Killam announces $9.0 million Ontario acquisition, increasing 2007 acquisitions to $102.7 million

    HALIFAX, Aug. 27 /CNW/ - Killam Properties Inc. (TSX:KMP/KMP:DB) is
pleased to announce the acquisition of Green Haven Estates, a 231 site
manufactured home community (MHC) located in Sarnia, Ontario. This latest
acquisition increases Killam's total rental portfolio to 16,575 units. Green
Haven Estates is Killam's eleventh MHC purchased in 2007. MHCs represent 40%
of the $102.7 million of acquisitions completed year-to-date.
    Green Haven Estates is situated on 45 acres of land and contains
231 existing sites, and an additional 45 development sites, with an average
monthly rent of $282. Further expansion costs are expected to be more than
offset by profit on new homes sales for the additional sites. The purchase
price of $9.0 million ($39,000 per existing site) was satisfied by a new
mortgage of $5.9 million at 6.02% and a non-interest bearing vendor-take-back
arrangement for $0.8 million, with the balance in cash.
    Killam has also recently completed the acquisition of Enfield Estates, a
10 acre, 56 site MHC with an average monthly rent of $190, located just
outside Metro Halifax. This acquisition represents Killam's sixth community in
the Halifax area. The purchase price of $1.05 million ($18,750 per site) was
satisfied by a new mortgage of $0.7 million at 6.26%, with the balance in
    "We are pleased to provide details on these new acquisitions. Green Haven
Estates is a high quality property that fits with our focus of continuing to
expand our exposure outside of Atlantic Canada. The development agreement in
place at Green Haven Estates will allow us to continue to generate internal
growth with manufactured home sales and increase rental revenue with new
sites" stated Philip Fraser, Killam's President and Chief Executive Officer.
"We continue to be interested in expanding our exposure outside Atlantic
Canada and expect to continue to be active in acquisitions across the

    Killam Properties Inc, based in Halifax, Nova Scotia, is one of Canada's
largest 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.

For further information:

For further information: Dale Noseworthy, CA, CFA, Director, Investor
and External Relations, Killam Properties Inc., (902) 442-0388, Fax: (902)

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