Chartwell REIT & Health Care REIT Team up to Buy the Maestro Portfolio

Chartwell REIT & Health Care REIT Team up to Buy the Maestro Portfolio

Chartwell Seniors Housing Real Estate Investment Trust  announced that a subsidiary of Chartwell has entered into an agreement with a subsidiary of Health Care REIT, Inc. to purchase a portfolio of 8,187 suites in 42 retirement communities in key Canadian growth markets for a net purchase price of approximately $931 million . The Properties are located in Québec (45%), Ontario (45%), British Columbia (7%) and Alberta (3%), with virtually all of the Properties being in the independent supportive living or assisted living segments. Occupancy for the Properties as at December 31, 2011 was 88%.

The acquisition is being made pursuant to the terms of an agreement of purchase and sale entered into among Chartwell Master Care LP (“Chartwell LP”), HCN Canadian Properties, Inc. , HCN and each of Maestro Retirement Residences Fund, L.P., Maestro Retirement Residences Fund II, L.P., Maestro Retirement Residences Fund III, L.P., Maestro Retirement Residences Fund IV, L.P. and Maestro Retirement Residences Fund V, L.P (collectively, the “Vendors”). Chartwell LP and HCN have completed their formal due diligence, and closing of the acquisition is anticipated on or about May 1, 2012 , subject to receipt of regulatory approvals.

Chartwell LP and HCN have agreed to form a co-ownership for the purpose of acquiring the Properties
and have agreed to enter into an agreement that will govern the Co-Ownership. As co-owners, subsidiaries of Chartwell and HCN will each acquire a 50% undivided interest in 39 of the Properties with 7,662 suites, which have a purchase price of approximately $850 million, and HCN will acquire a 100% interest in three of the Properties with 525 suites, which have a purchase price of approximately $81 million. Chartwell LP has agreed to manage all of the Properties, as well as any other retirement communities acquired in the future by the Co-Ownership pursuant to the terms of a management agreement or management agreements.


The average purchase price per suite of the Co-Owned Properties is estimated to be approximately
$111,000. Chartwell and HCN have received independent third party appraisals indicating that the
appraised value of the Properties exceeds the purchase price of the Properties.

“With the completion of this important transaction, we are increasing our focus on the strong, stable and
growing Canadian market,” commented Brent Binions, Chartwell’s President and CEO. “Most importantly,
the acquisition is expected to be immediately accretive to our AFFO per unit, on a debt-neutral basis, and
make a strong and growing contribution going forward.”

Mr. Binions continued: “This acquisition is consistent with our previously stated strategies to: (a) focus on
our core business by expanding our presence and leveraging our management infrastructure in existing
Canadian markets and thereby increase the percentage of total AFFO derived from our Canadian
property operations; and (b) enhance profitability by growing our presence in the higher-margin
independent/assisted living segments. We have completed extensive due diligence on this acquisition
and are confident that the quality of the Properties will enhance our already strong reputation for
delivering the highest levels of care and service.”

“We are very pleased to be entering into the arrangement with Health Care REIT, a highly experienced
and well capitalized participant fully committed to the North American seniors housing business” said Mr.
Binions. “We are also pleased that all of the approximately 2,400 people employed at the Properties, and
a number of Maestro head office professionals, will continue to be employed in connection with the
Properties. Chartwell is already active in all of Maestro’s major markets in Canada, which will ensure that
this transition will be a smooth one. In particular, Chartwell’s current Québec operations include
approximately 5,000 seniors housing suites, nearly 1,700 employees and a significant regional corporate
office, which will now expand its headcount. We are progressing well with our plans to integrate the
operational, sales, marketing and other disciplines supporting the Properties into the Chartwell
organization,” Mr. Binions continued.

“Health Care REIT is pleased to make this investment in Canadian seniors housing. The Canadian
economy is strong and this investment with Chartwell provides our company with the opportunity to work
with the premier seniors housing operator in Canada,” said George L. Chapman, Chairman, Chief
Executive Officer and President of Health Care REIT. “Chartwell has a reputation for delivering excellent
quality care and service to their residents and strong financial results to their investors. We have great
confidence in their ability to successfully manage the communities. We look forward to a long-term
investment in Canadian seniors housing and a lasting relationship with Chartwell.”

“We are satisfied with this transaction, which further solidifies our residence network and guarantees its
future. As experienced investors in the North American industry, Chartwell and Health Care REIT were
quick to recognize the quality of our portfolio of residences and the expertise of our employees, who will
continue to serve our residents to the highest standards of excellence,” said Pierre Ferland, President of
Maestro.

on February 24, 2012