Press release from CNW Group
Killam Properties Inc. continues to expand its Atlantic Canadian portfolio with the acquisition of three quality apartment buildings
Thursday, May 27, 2010
HALIFAX, May 27 /CNW/ - Killam Properties Inc. ("Killam") (TSX:KMP/KMP:DB) is pleased to announce the acquisition of three apartment buildings, consisting of 184 units, for a combined purchase price of $19.2 million. The closing of these properties increases Killam's 2010 acquisitions to $54.0 million.
Killam has acquired 459 & 505 Parkland Drive in Halifax, Nova Scotia. The two buildings contain 134 units and are located in Clayton Park, adjacent to Killam's Parkridge Place property. The buildings, constructed in 2000, include 38 one-bedroom, 56 two-bedroom and 40 three-bedroom units. The average rent for the 134 units is $880 per month, with current occupancy at 98.5%. The purchase price of $12.3 million ($92,000 per suite) was satisfied with a combination of the assumption of mortgages totaling $5.4 million and the balance in cash. The mortgages include $2.4 million at 7.8%, maturing and expected to be refinanced in August 2010, and a $3.0 million CMHC insured mortgage at 4.04%, maturing in November 2014.
In Moncton, New Brunswick, Killam will acquire Belmar Plaza, a 6-storey, 50-unit, concrete apartment building constructed in 2005. Located at 460 Mountain Road, the building is centrally located and includes many amenities, including a fitness centre, recreation room, and air conditioned units with five appliances. The average rent is $877 per month and the current occupancy is 96%. The 50 two-bedroom units are individually metered with tenants responsible for their own heating costs. Belmar Plaza includes two leased commercial spaces at street level at 3,300 and 5,600 square feet each. The purchase price of $6.9 million will be satisfied with a new five-year CMHC insured mortgage of $4.3 million at 3.64% and the balance in cash. The property is scheduled to close on June 11, 2010.
"We are pleased to announce these quality acquisitions." noted Philip Fraser, Killam's President and CEO. "These properties were built within the last 10 years and will complement our existing portfolios in Halifax and Moncton. The cap rate on the Parkland Drive acquisition was approximately 6.9%. The cap rate for the Moncton property was approximately 6.0%, reflecting the building's age, location and quality of construction. We believe Belmar Plaza to be one of the highest quality new residential apartment buildings in Moncton."
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.
For further information: Dale Noseworthy, CA, CFA, Director, Investor and External Relations, Killam Properties Inc., (902) 442-0388, email@example.com; www.killamproperties.com