HALIFAX, Dec. 16 /CNW/ - Killam Properties Inc. ("Killam" or the "Company") (TSX:KMP/KMP.DB.A) is pleased to announce the acquisition of Meadowland Manor, a 105-unit apartment building in St. John's, Newfoundland. The purchase of Meadowland Manor marks the completion of $115.1 million in apartment acquisitions in 2010, in-line with the Company's goal of completing between $100 million and $150 million in acquisitions during the year.
Meadowland Manor is located at 107 Bay Bulls Road, approximately six kilometers southwest from the downtown core. The property, which is currently 99% occupied, contains 2 bachelor, 93 one-bedroom, 8 two-bedroom and 2 three-bedroom units. The average rent is $641 per month, with tenants responsible for their own heating costs.
The purchase price of $7.15 million ($68,100 per suite) was satisfied with cash and the acquisition capitalization rate was approximately 7%. Management expects to place a Canada Mortgage and Housing Corporation ("CMHC") insured mortgage on the property during the first quarter of 2011.
Killam's St. John's portfolio now totals 689 units, representing 19.7% of the city's private apartment units, as measured by CMHC.
"We are pleased to expand our ownership in St. John's," noted Philip Fraser, Killam��s President and CEO. "We are optimistic about the rental market in St. John's as strong demand for rental units and low levels of new construction continue to hold vacancy at approximately 1%."
"This acquisition completes Killam's 2010 acquisition program. We have added eight new properties to our apartment portfolio this year, including new buildings in London and Cambridge, Ontario, and established buildings in our core markets of Halifax, Moncton and St. John's. We look forward to continuing to grow the portfolio in 2011."
Killam Properties Inc, based in Halifax, Nova Scotia, is one of Canada's largest publicly traded 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.
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