HALIFAX, Jan. 15, 2020 /CNW/ - Killam Apartment REIT (TSX: KMP.UN) has acquired Christie Point Apartments, a 161-unit property for $54 million ($335,000 per unit) using cash and its acquisition credit facility. Killam expects to place mortgage financing on the asset during the first quarter.
The property features five, two-storey buildings and four, two-storey townhouse buildings on a waterfront peninsula with 6,000 feet of direct water frontage. Located in the sought-after View Royal neighbourhood, the property is close to transit, highways, shopping, a hospital and schools. These two and three-bedrooms units were originally built in 1963 and the property has a heated, outdoor swimming pool, community garden, social room and scenic trails along the waterfront.
Christie Point Apartments is currently 99% occupied and contains office space that Killam will use in establishing a Victoria operating platform. The property has a development agreement in place, which allows for redevelopment of the 15.8 acre site in phases, for an additional 315 units.
"We are pleased to extend our apartment portfolio to Victoria," noted Philip Fraser, President and CEO. "Christie Point Apartments is an attractive first acquisition in the Victoria market due to its size, location, and revenue growth potential, as well as the longer-term redevelopment opportunities. Our acquisition pipeline is robust as we start 2020 and we continue to seek opportunities to accretively grow our portfolio across Canada."
About Killam Apartment REIT
Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating and developing a $3.2 billion portfolio of apartments and manufactured home communities. Killam's strategy to enhance value and profitability focuses on three priorities: 1) increasing earnings from existing operations, 2) expanding the portfolio and diversifying geographically through accretive acquisitions, with an emphasis on newer properties, and 3) developing high-quality properties in its core markets.
Note: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. 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 Killam's 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.
SOURCE Killam Apartment Real Estate Investment Trust
For further information: Nancy Alexander, CPA, CA, Vice President, Investor Relations and Sustainability, [email protected], (902) 442-0374