HALIFAX, April 23 /CNW/ - Killam Properties Inc. (TSX:KMP/KMP:DB) is pleased to announce the acquisition of Richmond Hill Apartments, a new, 137-unit, luxury apartment building in London, Ontario.
The 12-storey concrete apartment building, completed in 2009, is located at 1985 Richmond Street, close to hospitals, shopping and the University of Western Ontario. The building's average rent of $1,588 per month reflects its modern, spacious units, with 9 foot ceilings and units up to 2,300 square feet, and includes granite countertops and six appliances. The building's amenities include a fitness centre, guest suite, air conditioning and 183 underground parking spaces.
The building is currently 97.8% occupied. The purchase price of $33.0 million ($241,000/suite) was satisfied by the assumption of a mortgage of approximately $20.1 million due in 2014 at 4.3% and the balance in cash.
"We are pleased to add this property to our portfolio, which we believe to be among the highest quality apartment buildings in our portfolio" noted Philip Fraser, Killam's President and CEO. "We have been actively looking for new, high quality acquisition opportunities in Ontario for two years and Richmond Hill Apartments represents the type of building we are interested in owning in Ontario. We believe that our acquisition program in Ontario will be both accretive and add value to the Killam portfolio over time. The cap rate on this acquisition was approximately 5.8%, 150 basis points over the cost of mortgage debt on the acquisition, and reflects the age and quality of the property."
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: Philip Fraser, President & CEO, Killam Properties Inc., (902) 453-4536, email@example.com; Dale Noseworthy, CA, CFA, Director, Investor and External Relations, Killam Properties Inc., (902) 442-0388, firstname.lastname@example.org; www.killamproperties.com