Sifton selling off retirement homes

Sifton Properties sells all six of its London retirement homes across southwestern Ontario. CTV’s Bryan Bicknell brings the details.

Sifton, one of London’s oldest and largest property owners, is getting out of the retirement home business.

CTV News has learned the company is selling off its retirement communities in London and elsewhere throughout southwestern Ontario.

Retirement home operator, Chartwell is acquiring the properties.

In a statement to CTV News, Sifton said, “Sifton Properties Limited has made the strategic decision to transition out of the retirement living sector and divest our portfolio in this industry. This will allow Sifton to refocus on growth across our other platforms.”

The properties include Riverstone, Richmond, and Longworth, all in London; along with Dorchester Terrace in Dorchester, Westhill in Waterloo and Erinview in Mississauga.

Chartwell Retirement Residences, which already has a presence in the region, is acquiring the six properties, with 1,024 suites, for a total purchase price of $432 million.

“We think that we know how to operate retirement residences,” said Chartwell CEO Vlad Volodarksi in an interview with CTV News. “We try to expand the footprint that we have across the country, and our strategy is to acquire residences that are more efficient, newer, larger, located in great, growing markets. And this portfolio certainly fits that description,” he explained.

The deal comes as Canada’s population ages rapidly. According to Statistics Canada, seniors made up one fifth of the population in 2023. By 2030, that number will swell to almost one quarter.

Gloria McKibbin is the chairperson of the London-St. Thomas Chapter of the Canadian Association of Retired Persons, and worked in the retirement home sector for three decades. She says both companies involved in this transaction have great track records in the retirement home sector. But she adds that this region needs more seniors’ housing, especially affordable options.

“Not every person who’s a pensioner gets a private pension. A lot of them that get the Old Age Security, the Canada Pension, and a lot of them are getting additional assistance and gains because they just don’t have a lot. In fact, a lot of people can’t even get into a regular apartment building nowadays just because the rents are very, very high,” said McKibbin.

In the meantime, Chartwell says it does not anticipate any staffing changes during the transition. The deal is expected to be finalized later this year, once regulatory approvals have been granted.