Killam Closes $35 Million Public Offering of Common Shares

/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

HALIFAX, Nov. 30, 2011 /CNW/ - Killam Properties Inc. (TSX: KMP) is pleased to announce that it has closed its previously announced public share offering ("the Offering"), on a bought-deal basis, of 3,256,000 shares ("the Shares"), to the public at a price of $10.75 per share for gross proceeds of $35.0 million.

The Offering was made pursuant to an underwriting agreement with a syndicate of underwriters lead by RBC Capital Markets and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., Dundee Securities Ltd., Macquarie Capital Markets Canada Ltd., Beacon Securities Limited, Brookfield Financial Corp., and GMP Securities L.P. The underwriters have the option, exercisable up to 30 days after closing of the Offering, to purchase up to an additional 488,400 common shares at the same offering price which, if exercised in full, would increase the total gross proceeds to $40.3 million.

Killam intends to use the proceeds from the Offering to fund future property acquisitions and developments, to repay certain indebtedness and for general corporate purposes.

The Shares being offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and state securities laws.  Accordingly, the Shares may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act

Killam Properties Inc., based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating and developing multi-family apartments and manufactured home communities.

Note: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain statements in this report may constitute forward-looking statements relating to the offering, our operations and the environment in which we operate, which are based on our expectations, estimates, forecast and projections, which we believe are reasonable as of the current date. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Killam to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For more exhaustive information on these risks and uncertainties, you should refer to our most recently filed annual information form which is available at www.sedar.com. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made and should not be relied upon as of any other date. Other than as required by law, Killam does not undertake to update any of such forward-looking statements.

SOURCE KILLAM PROPERTIES INC.

For further information:

Killam Properties Inc.
Philip Fraser
President & CEO
pfraser@killamproperties.com
902-453-4536

or

Dale Noseworthy
Vice President, Investor Relations and Corporate Planning
dnoseworthy@killamproperties.com
902-442-0388

Profil de l'entreprise

KILLAM PROPERTIES INC.

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