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Press release from CNW Group

KILLAM CLOSES $57.5 MILLION PUBLIC OFFERING OF CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES

Tuesday, November 30, 2010

KILLAM CLOSES $57.5 MILLION PUBLIC OFFERING OF CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES08:54 EST Tuesday, November 30, 2010/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/HALIFAX, Nov. 29 /CNW/ - Killam Properties Inc. (TSX:KMP/KMP.DB.A) is pleased to announce that it has closed its previously announced public offering (the "Offering"), on a bought-deal basis, of $57.5 million aggregate principal amount of 5.65% convertible unsecured subordinated debentures due November 30, 2017. The $57.5 million includes the full exercise of the underwriters' over-allotment option.The Offering was made pursuant to an underwriting agreement with a syndicate of underwriters lead by RBC Capital Markets and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., National Bank Financial Inc., Beacon Securities Limited, Desjardins Securities Inc., Dundee Securities Corporation, Macquarie Capital Markets Canada Ltd., Brookfield Financial Corp., M Partners Inc. and Raymond James Ltd.Killam intends to use the net proceeds from the Offering to redeem its outstanding 6.50% convertible subordinated debentures on December 13, 2010, fund future property acquisitions and development activities, to repay indebtedness, and for general corporate purposes.The 5.65% convertible unsecured subordinated debentures due November 30, 2017 will be listed on the Toronto Stock Exchange under the symbol "KMP.DB.A".Killam Properties Inc., based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning and operating 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.%SEDAR: 00014891EFor further information: Killam Properties Inc. Philip Fraser President & CEO pfraser@killamproperties.com 902-453-4536orDale Noseworthy Vice President, Investor Relations and Corporate Planning dnoseworthy@killamproperties.com 902-442-0388