HALIFAX, June 7 /CNW/ - Killam Properties Inc. ("Killam") (TSX:KMP/KMP:DB) is pleased to announce the acquisition of two apartment buildings, consisting of 225 units, for a combined purchase price of $46.7 million. These properties bring Killam's 2010 acquisitions to $100.7 million, the lower level of the 2010 acquisition target of $100 to $150 million.
Killam has acquired 100 and 200 Eagle Street North in Cambridge, Ontario, in the Kitchener-Waterloo Region. The luxury apartment buildings are of newer concrete construction and include spacious units ranging from 1,000 to 1,400 square feet, modern features and five appliances. The buildings' amenities include a fitness centre, guest suite, air conditioning and underground parking.
100 Eagle Street, constructed in 2008, has 119 units with 9-foot ceilings, including 3 one-bedroom units, 59 two-bedroom units and 57 two-bedroom units with a den. The average rent is $1,523 per month. 200 Eagle Street, constructed in 2004 and located directly beside 100 Eagle Street, has 106 units, including 25 one-bedroom units and 81 two-bedroom units. The average rent is $1,351 per month.
The purchase price for the two river-front properties of $46.7 million ($207,600 per suite) was satisfied with a combination of the assumption of a 20-year mortgage for $10.1 million at 5.15%, a new mortgage for $16.0 million at 4.5%, and the balance in cash.
"We are pleased to report progress on our apartment acquisition program in Ontario" noted Philip Fraser, Killam's President and CEO. "Closing these two Cambridge assets increases Killam's apartment ownership in Ontario to 362 luxury apartment units. We have continued our acquisition focus on newer, high quality assets. These two assets meet this standard and are among the highest quality assets in Cambridge. The cap rate on the acquisition is approximately 5.7%, reflecting the buildings' age, location and quality of construction."
Killam Properties Inc, based in Halifax, Nova Scotia, is one of Canada's largest publicly traded residential landlords, owning and operating multi-family apartments and manufactured home communities.
Note: The Toronto Stock Exchange has neither approved or disapproved of the information contained herein. Certain statements in this report may constitute forward-looking statements. 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. Killam does not undertake to update any of such forward-looking statements.
SOURCE Killam Properties Inc.
For further information: For further information: Dale Noseworthy, CA, CFA, Director, Investor and External Relations, Killam Properties Inc., (902) 442-0388, email@example.com; www.killamproperties.com