HALIFAX, Sept. 4, 2012 /CNW/ - Killam Properties Inc. (TSX: KMP) is pleased to announce that it has completed the acquisition of a four-building, 244-unit apartment portfolio in Ottawa, Ontario. The portfolio includes 1425 Rosenthal Avenue (54 units), 1440 Mayview Avenue (103 units), 266 Bronson Avenue (43 units), and 621 Cummings Avenue (44 units). The centrally located buildings include 29 bachelor units, 149 one-bedroom units and 66 two-bedroom units, and have an average rent of $837 per month.
The purchase price of $24.0 million ($98,400 per suite) was satisfied with the assumption of $13.2 million in existing mortgages with a weighted average interest rate of 4.69%, and the balance in cash. The capitalization rate on the acquisition is 5.6%.
This acquisition brings Killam's apartment unit count in Ontario to 1,078 units (472 units held through a joint venture), representing 9.3% of the Company's 11,638 unit apartment portfolio. Killam remains committed to expanding its geographic diversification with increased investment outside Atlantic Canada.
"We are pleased to add this group of assets to our apartment portfolio, noted Philip Fraser, Killam's President and CEO. "We've been looking for acquisition opportunities in Ottawa over the last four years, believing it to be one of the strongest cities for long-term investment in Ontario. This portfolio acquisition complements Killam's first Ottawa acquisition, Kanata Lakes Apartments, purchased earlier this year."
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 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.
For further information:
Killam Properties Inc.
Dale Noseworthy, CA, CFA
Vice President, Investor Relations & Corporate Planning
Phone: (902) 442-0388