Killam Closes Exercise of Over-Allotment Option

/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

HALIFAX, Dec. 14, 2012 /CNW/ - Killam Properties Inc. (TSX: KMP) ("Killam") is pleased to announce that it has closed the sale of an additional 375,000 common shares of Killam (the "Common Shares") to the public at a price of $12.00 per share for gross proceeds of $4,500,000, pursuant to the over-allotment option exercised by the underwriters in connection with its public offering of Common Shares which closed on December 10, 2012 (the "Over-Allotment Option"). The exercise of the Over-Allotment Option brings the total number of Common Shares sold by Killam in this public offering to 2,875,000 and brings the total gross proceeds of the public offering to $34,500,000.

The syndicate of underwriters for the offering of Common Shares was led by RBC Capital Markets and included BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., Dundee Securities Ltd., Macquarie Capital Markets Canada Ltd., GMP Securities L.P., Raymond James Ltd. and Brookfield Financial Corp.

Killam intends to use the proceeds from the Over-Allotment Option to repay certain indebtedness, including the redemption of its $10 million of unsecured subordinated debentures which bear interest at a weighted average contractual rate of 6.16% and mature on January 4, 2013, and the balance to fund future property acquisitions and developments, and for general corporate purposes.

The Common Shares being offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and state securities laws.  Accordingly, the Common Shares may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.

Killam Properties Inc., based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating and developing multi-family apartments and manufactured home communities.

Note: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain statements in this report may constitute forward-looking statements relating to the offering, our operations and the environment in which we operate, which are based on our expectations, estimates, forecast and projections, which we believe are reasonable as of the current date. 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 our 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 PROPERTIES INC.

Killam Properties Inc.
Philip Fraser
President & CEO
[email protected]
902-453-4536

or

Dale Noseworthy
Vice President, Investor Relations and Corporate Planning
[email protected]
902-442-0388