HALIFAX, Dec. 16, 2019 /CNW/ - Killam Apartment REIT (TSX: KMP.UN) is pleased to announce the recent closing of two acquisitions totaling $41.0 million in Edmonton and Moncton. These purchases build on Killam's existing presence in Edmonton and Moncton, aligning with Killam's strategic goals of accretive acquisitions targeting newer properties and diversifying geographically.
Killam has acquired the Link, an eight-storey, concrete apartment building located in the growing southwest portion of Edmonton. This newly constructed building contains 105 units with 163 underground parking stalls and a large rooftop patio. In its initial lease-up, the Link is currently 88% leased. The average unit size is 830 square feet and has condo-quality finishes. The acquisition cost was $31.5 million ($300,000 per unit) and Killam's Edmonton portfolio now totals 579 rental units.
Killam has acquired 145 Canaan Drive in Moncton. The property consists of a new four-storey, wood-frame apartment building, costing $9.5 million. The apartment building contains 48 units with high-quality finishes and 38 underground parking stalls. This property is well-located and shares a parking lot with Killam's existing 155 Canaan apartment building. The property is currently 100% occupied. This acquisition increases Killam's Moncton portfolio to 1,804 rental units.
Both acquisitions were funded with cash-on-hand from Killam's recent equity offering. Killam completed $186.2 million in acquisitions year-to-date, achieving its 2019 targets to grow the portfolio to over $3.0 billion, with a minimum acquisition target of $100 million.
"We are pleased to grow our apartment portfolios in Edmonton and Moncton," noted Philip Fraser, President and CEO. "The acquisition of the Link builds on our base of high-quality, newly-constructed assets in the Edmonton market and the Moncton asset is a strong complement to our portfolio in the growing Dieppe market. We have an active acquisition pipeline and 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