MISSISSAUGA, Ontario--(BUSINESS WIRE)--Feb. 21, 2005--Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) announced today that it would be acquiring, for approximately $29.8 million, five retirement homes in select communities across Northern Ontario, significantly strengthening its presence in the region.

Chartwell will be purchasing a portfolio of four retirement homes located in Sudbury, Timmins, North Bay and Pembroke, Ontario totaling 256 suites for a total purchase price of approximately $19.1 million. Approximately $12.7 million of the purchase price will be satisfied by the issuance of Chartwell's Class B Master LP Units to the vendor. The facilities are modern, well-located in strong markets, and enjoy solid occupancies. Senior management of the vendor will remain to assist in the management of the acquired residences ensuring the transition is seamless for residents, families and staff. Chartwell expects the transaction will close at the end of February 2005.

Having obtained approval of the independent directors of the REIT's Investment Committee, Chartwell also announced today that it would acquire the Glacier Ridge Retirement Residence from Spectrum Seniors Housing Development LP for approximately $10.7 million. This brand new, 78-suite light care retirement home is situated in Thunder Bay, Ontario. Occupancy stands at a fully stabilized 90% and is growing. After repayment of the $4.1 million mezzanine loan outstanding, the REIT on closing will issue approximately $1.2 million in Class B Master LP Units to Spectrum, owned 80% by senior management of the REIT. It is anticipated the acquisition will close in April 2005.

The purchase of Glacier Ridge is Chartwell's first acquisition from Spectrum, Canada's largest and fastest growing developer of seniors housing. Chartwell has an exclusive arrangement with Spectrum to acquire facilities built by Spectrum once they are operational and fully stabilized. Chartwell has the option to extend mezzanine financing to Spectrum, as well as generate management and other fees until a home is acquired. While removing any risk for unitholders from development and lease-up phases, the relationship with Spectrum provides Chartwell with a large pipeline of future acquisitions with which it can grow and enhance the quality of its property portfolio. As of December 31, 2004 Spectrum had approximately 3,000 suites under development, of which approximately 800 suites will be available for acquisition during 2005.

"We are very pleased to be increasing our presence in Northern Ontario, one of the country's most stable markets for seniors housing," commented Stephen Suske, Vice Chair and President. "We are also pleased to be acquiring our first property from Spectrum, and look forward to adding more of their brand new, high quality and fully stabilized properties to our growing portfolio."

Chartwell REIT is a growth-oriented investment trust owning and managing a complete spectrum of seniors housing properties in selected centres across Canada. Focused solely on the Canadian marketplace, Chartwell REIT is currently the second largest participant in the Canadian seniors housing business. Chartwell REIT will capitalize on the strong demographic trends present in its markets to grow internally and through accretive acquisitions. Chartwell REIT also has an exclusive option to purchase stabilized facilities from Spectrum Seniors Housing Development LP, a seniors housing development company.

Chartwell's Distribution Reinvestment Plan (DRIP) allows Unitholders to have their monthly cash distributions used to purchase units without incurring commission or brokerage fees, and receive bonus units equal to 3% of their monthly cash distributions. More information can be obtained at www.chartwellreit.ca

Certain statements contained in this news release may include forward-looking information with respect to Chartwell Seniors Housing Real Estate Investment Trust's operations and future financial results. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, availability of resources, competitive pressures, changes in market activity and regulatory requirements. Further information can be found in the disclosure documents filed by Chartwell Seniors Housing Real Estate Investment Trust with the securities regulatory authorities, available at www.sedar.com.

Chartwell Seniors Housing REIT (TSX:CSH.UN)

    CONTACT: Chartwell Seniors Housing Real Estate Investment Trust
             Mr. Stephen Suske
             Vice Chair and President
             (905) 501-4701
             Fax: (905) 501-9107
             [email protected]
             www.chartwellreit.ca

    SOURCE: Chartwell Seniors Housing REIT