HALIFAX, Nov. 7, 2011 /CNW/ - Killam Properties Inc. (TSX: KMP) is
pleased to announce the acquisition of Rutledge Manor and the start of
construction of Bennett House, a 71-unit apartment development, in St.
Acquisition of Rutledge Manor
Killam has acquired Rutledge Manor, a 53-unit building, for $6.65
million. The property is located at 2 The Boulevard, adjacent Quidi
Vidi Lake and within two kilometers of downtown St. John's. Recently
upgraded, Rutledge Manor contains 4 bachelor, 19 one-bedroom and 30
two-bedroom units and is currently 100% occupied. The average monthly
rent, which includes 14 furnished executive units, is $1,030; the
average rent for the 39 unfurnished suites is $766 and the average for
the 14 furnished suites is $1,767.
The purchase price of $6.65 million ($125,500 per suite) was satisfied
with a $4.5 million mortgage at 3.95% and the balance in cash. The
capitalization rate is approximately 6.1%.
Development of Bennett House
Killam is expecting to receive, within the next few weeks, municipal
approval to begin construction of Bennett House, a 71-unit steel and
concrete apartment building to be located at 66 Churchill Avenue, on
land Killam purchased in March of this year. Bennett House is the first
phase of a three phase development which will contain 210 units when
completed. The site is adjacent Quidi Vidi Lake, close to Rutledge
Marco Group of Companies, one of Atlantic Canada's largest construction
firms, will act as the project manager and Studio Works International
Inc. is the project's architectural design firm.
The four-storey luxury building will be approximately 107,500 square
feet and will have many amenities, including underground parking, a
boardroom for tenants, a multi-purpose lounge and a movie theatre.
The individual suites will be spacious, including 52 two-bedroom suites
with an average size of 1,050 square feet and 19 one-bedroom suites
with an average size of 750 square feet, and will include 6 appliances
and high-quality finishes. The building will have 77 parking stalls,
including 52 interior and 25 exterior stalls.
Construction of Bennett House is expected to take approximately 14
months to complete. The construction costs are estimated to be
approximately $14.4 million ($203,000 a suite) with an all-cash
unlevered return expected of between 5.5% and 6.0%.
"We are pleased to expand our ownership in St. John's, which I believe
is Canada's most attractive apartment market." noted Philip Fraser,
Killam's President and CEO. "The economic growth in St. John's has been
"We look forward to beginning construction of Bennett House, the first
of three planned developments in St. John's. We are optimistic about
the demand for new rental suites in the city, a market that has seen
virtually no new purpose-built rental construction for over fifteen
years. The existing rental stock in St. John's is old, and the demand
for housing is the strongest it has ever been, with average rents
increasing by 5.7% and 9.4% in 2010 and 2011, respectively, as reported
by CMHC in its Spring 2011 Rental Market Report."
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 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.
Image with caption: "Killam Properties Inc expects to begin construction of Bennett House, a 71-unit apartment building to be located at 66 Churchill Avenue in the Pleasantville area of St. John's, Newfoundland, in December 2011. (CNW Group/KILLAM PROPERTIES INC.)". Image available at: http://photos.newswire.ca/images/download/20111107_C3335_PHOTO_EN_6209.jpg
SOURCE KILLAM PROPERTIES INC.
For further information:
Killam Properties Inc.
Dale Noseworthy, CA, CFA
Vice President, Investor Relations & Corporate Planning
Phone: (902) 442-0388