On May 7, Chartwell Retirement Residences (TSX: CSH.UN) entered into a definitive agreement to acquire a minority ownership stake in Seasons Retirement Communities through a new joint venture with Fengate Asset Management.
Chartwell will own a 30% stake in the joint venture, while Fengate — the existing owner acting on behalf of the LiUNA Pension Fund of Central and Eastern Canada — will own the remaining 70%.
The portfolio includes 23 seniors housing properties located in Ontario, Alberta, and British Columbia with a grand total of 2,943 suites and an occupancy rate of approximately 86%, according to a press release.
Chartwell, already one of the largest owners and operators of seniors housing in Canada, will pay $382.5 million for the 30% ownership stake, valuing the entire portfolio at $1.275 billion. The purchase will be funded by cash and the assumption of approximately $195.8 million of in-place mortgages that together have a weighted average interest rate of 4.47% and weighted average term to maturity of 3.7 years.
RBC Capital Markets served as the exclusive financial advisor to Chartwell and the transaction is expected to close by the end of Q2 2026, pending third-party consents and regulatory approvals.
The portfolio of 23 properties — including two properties in Vancouver that Fengate acquired from Concert Properties last year, as previously reported by STOREYS — are as follows:
- Wesbrook Village, Vancouver, BC: 154 units
- Arbutus, Vancouver, BC: 141 units
- London, London, ON: 159 units
- St. Catharines, St. Catharines, ON: 143 units
- Cambridge, Cambridge, ON: 139 units
- St. Thomas, St. Thomas, ON: 151 units
- Stoney Creek, Stoney Creek, ON: 136 units
- Milton, Milton, ON: 150 units
- Strathroy, Strathroy, ON: 117 units
- Dufferin Centre, Trenton, ON: 125 units
- Brantford, Brantford, ON: 146 units
- Owen Sound, Owen Sound, ON: 118 units
- Welland, Welland, ON: 144 units
- Amherstburg, Amherstburg, ON: 128 units
- Belle River, Belle River, ON: 105 units
- Royal Oak Village, LaSalle, ON: 127 units
- Lethbridge Gardens, Lethbridge, AB: 103 units
- Encore, Olds, AB: 107 units
- High River, High River, AB: 176 units
- Drayton Valley, Drayton Valley, AB: 68 units
- Camrose, Camrose, AB: 141 units
- Ponoka, Ponoka, AB: 68 units
- Wetaskiwin, Wetaskiwin, AB: 97 units
An overview of the 23 properties. (Chartwell Retirement Residences)
“These communities are designed to serve a broad range of seniors and strategically located in markets with strong underlying fundamentals,” said Chartwell, which will serve as operations manager of the portfolio. Fengate will serve as the asset manager.
The new partnership can also be expanded in the future, with Chartwell having the opportunity to acquire an additional 20% ownership stake in the portfolio “upon certain milestones being met.” Furthermore, Chartwell “will have the option to participate in Fengate’s future development of retirement residences in Ontario.”
“This Transaction reflects the continued execution of our disciplined investment strategy focused on acquiring high-quality residences in core markets with strong demographic profiles and long-term demand fundamentals,” said Chartwell CIO Jonathan Boulakia. “The Portfolio’s embedded lease-up and operational optimization opportunities, combined with Chartwell’s proven operating platform and expertise, position us to deliver strong risk-adjusted returns for our unitholders.”
Chartwell Q1 2026
The joint venture with Fengate was announced along with Chartwell’s Q1 2026 report, in which Chartwell also disclosed several other transactions.
In March, Chartwell acquired the remaining 15% ownership interest in the 421-unit Chartwell L’Unique in Montreal from Batimo for $18.8 million and sold a non-core property in Ottawa for $49.0 million.
In April, Chartwell closed on its previously-announced acquisition of six Ontario properties from Sifton Properties for $416.2 million (after some regulatory concerns), entered into an agreement to acquire 100% of the 116-unit Palermo Village Retirement Residence in Oakville for $43.0 million, and also agreed to sell 677 units across nine non-core properties in Ontario for a total of $117.9 million.
Most recently in May, Chartwell entered into an agreement to sell Chartwell Ballycliffe LTC in Ajax, Ontario for $68.3 million, with closing expected in Q4 2026.
As of May 7, Chartwell said it had $581.6 million in liquidity, split between $186.7 million of cash and $394.9 million in available credit facilities.
Property revenue increased by $59.4 million from Q1 2025 to Q1 2026, although net income decreased by $25.2 million. Same property adjusted net operating income (NOI) increased by 15.6% in that same time and same property adjusted NOI per occupied suite increased by 10.7%.
