Last summer, Chartwell Retirement Residences (TSX: CSH.UN) announced that it had reached an agreement to acquire a portfolio of six seniors housing communities located in southwest Ontario for $432 million, continuing to expand its footprint in the region.
The portfolio of six properties represented the entire seniors housing portfolio of Ontario-based Sifton Properties and totalled to 1,024 suites (plus 29 additional units under construction), split between the following six properties:
- Riverstone at 1951 Shore Road in London: 259 units
- Richmond Woods at 200 N Centre Road in London: 242 units
- Longworth at 600 Longworth Road in London: 126 units
- Dorchester Terrace at 143 Byron Road in Dorchester: 123 units + 29 units to be completed by Q4 2026
- The Westhill at 25 Westhill Drive in Waterloo: 217 units
- Erinview at 2630 Fifth Line West in Mississauga: 57 units
In a press release, Chartwell said they were buying the 1,024 units for $416.2 million, plus $15.8 million upon completion of the 29 additional units at Dorchester Terrace, for a total purchase price of $432 million.
“The purchase price at closing will be settled by assuming in-place debt of $232.7M, majority CMHC-insured, and in part from proceeds of already planned 2025 CMHC financings of approximately $240M,” said Chartwell. “The assumed in-place debt has a weighted average interest rate of 4.50% and weighted average maturity date of March 2045. Closing is expected in Q4 2025. TD Securities is acting as the exclusive financial advisor to the vendor of this portfolio.”
When a proposed transaction reaches certain thresholds, however, such as the size of the transaction or size of a party involved, the Competition Bureau is required to be notified and then review the proposed transaction.
Already one of the largest owner and operators of seniors housing in Canada and already owning a number of assets across Ontario, the Competition Bureau became concerned that the proposed acquisition by Mississauga-based Chartwell was anti-competitive.
“A Bureau review concluded that the proposed transaction would likely result in a substantial lessening of competition in health care services and accommodations provided by licensed retirement homes in the Kitchener-Waterloo, Ontario area,” said the Competition Bureau in a notice published last week.
“As the Canadian population ages, the retirement home industry becomes even more important, with demand expected to accelerate rapidly over the next decade,” it added. “Competition in the retirement home sector plays a crucial role in keeping prices in check and pushing providers to maintain high standards of care and modern, well-maintained facilities.”
To address its concerns, the Competition Bureau said it had reached a consent agreement — which has the force of a court order — with Chartwell that will see the company sell its Clair Hills property at 530 Columbia Street West in Waterloo. The sale has not been completed yet, but will be made to an independent purchaser to be approved by the Commissioner of Competition, according to the notice.
It’s unclear how the Competition Bureau chose the Clair Hills property — Chartwell’s website currently lists two properties in Waterloo, two in Kitchener, two in Mississauga, and one in London — but the Bureau said the sale would resolve the competition concerns that could result from the proposed transaction.
Chartwell Retirement Residences
Chartwell’s portfolio as of December 31, 2025. (Chartwell Retirement Residences)
The acquisition of Sifton’s portfolio was just one in an extensive string of acquisitions for Chartwell last year, which made 13 other acquisitions in 2025 — some for partial ownership stakes — including four in December: the 334-unit Chartwell Azalis in Quebec for $111 million, the 155-unit Chartwell Edgewater in British Columbia for $102.7 million, the 90-unit The Edward in Alberta for $53 million, and the remaining 15% ownership interest in the 368-unit Résidence Légende in Quebec for $17.9 million.
“2025 was a record year of acquisitions for Chartwell with over $1.7 billion in completed and announced investments during the year,” said Chartwell in its 2026 outlook. “We acquired interests in properties in core markets across British Columbia, Ontario, Quebec, and Alberta. These transactions included the acquisition of several newer, high-quality properties, as well as the consolidation of our ownership interests in a number of existing residences.”
“We expect the strong pace of acquisitions to continue in 2026 as we pursue opportunities to high grade our portfolio by acquiring newer, high-quality properties in core markets,” it added. “We remain focused on leveraging our operating platform, maintaining financial flexibility, and advancing acquisitions that support long-term portfolio optimization.”
“We have identified properties within our portfolio that no longer fit our core strategic focus due to their location, size, age and/or service offering,” the company also said. “These non-core properties represent approximately 5,500 suites. We intend to pursue dispositions of these properties in the next three years, as market conditions allow, with proceeds expected to be used to support future development and acquisition activity that is in line with Chartwell’s current strategy.”
One such sale has already been lined up, as Chartwell disclosed elsewhere in its annual report that it had entered into an agreement in February to sell a non-core property leased to Ottawa Hospital for $49 million. Closing is expected in Q1 2026.
