HALIFAX, Dec. 13 /CNW/ - Killam Properties Inc. (TSX:KMP/KMP:DB) is
pleased to announce four acquisitions consisting of 445 units for a combined
purchase price of $17.9 million. The purchases include 221 apartment units and
a 224 unit seasonal MHC community. The acquisitions increase Killam's total
rental portfolio to 17,405 units. Killam has completed $124.6 million of
acquisitions during 2007, in-line with the upper end of its acquisition target
of $100 to $125 million for the year. The Company's total portfolio has
increased by 3,312 units, or 23.5%, year-to-date.
Killam will acquire One Oak Street located in Dartmouth, Nova Scotia,
with commanding views of downtown Halifax and the Dartmouth lakes. The
146-unit, 14-storey concrete landmark apartment building consists of one
bachelor unit, 90 one-bedroom units and 55 two-bedroom units with an average
two-bedroom rent of $853/month. The purchase price of $10.3 million
($70,500/suite) will be satisfied with a new $7.725 million CMHC insured first
mortgage with an interest rate of approximately 4.9%, and the balance in cash.
In Charlottetown, Killam has acquired Bridlewood Apartments, a
two-building, 66-unit property, consisting of six one-bedroom units, 58
two-bedroom units and two three-bedroom units. The average two-bedroom rent is
$775/month. The fully-occupied elevatored property is approximately nine years
old and is situated in close proximity to other Killam apartment buildings.
The purchase price of $4.95 million ($75,000/suite) was satisfied with a new
$3.7 million CMHC insured first mortgage with an interest rate of 4.8%, and
the balance in cash.
Killam has also acquired its fifth seasonal community, Camper City, a
224-site seasonal RV and camping resort located in Moncton, New Brunswick. The
61 acre community has an average annual rent per site of $1,728/year. The
resort property contains many recreational facilities and has excess capacity,
estimated to allow for the expansion of an additional 50 sites. The purchase
price of $2.25 million ($10,000/site) was satisfied by cash.
During November, Killam increased its ownership in Blackshire Court, a
72-unit apartment in St. John's, Newfoundland, to 96% from 84%, representing
an additional nine units. Killam spent $0.4 million to purchase the additional
12% interest. The property was refinanced on December 3, 2007, with a new CMHC
insured first mortgage with an interest rate of 4.26% for a five year term.
"These purchases complete our acquisition program for 2007, ending the
year with $125 million of new properties" noted Philip Fraser, Killam's
President and CEO. "I am pleased with the acquisitions we have completed
throughout the year. We have added quality assets to our portfolio and
continued to expand our geographic footprint with acquisitions in Ontario,
Alberta and British Columbia. We look forward to continued growth in 2008,
facilitated by a healthy balance sheet, including cash on hand."
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
For further information:
For further information: Killam Properties Inc.: Dale Noseworthy, CA,
CFA, Director, Investor and External Relations, (902) 442-0388, Fax: (902)
455-4525, firstname.lastname@example.org, www.killamproperties.com