Killam Apartment REIT T.KMP.UN

News

[gleeno2001]

Killam closes two new acquisitions adding 302 rental units to start the year Wednesday March 2, 3:54 pm ET HALIFAX, March 2 /CNW/ - Killam Properties Inc. (KMP-TSX) continues to execute its strategy of consolidating the rental apartment and manufactured home community markets in Eastern Canada, and is pleased to announce two acquisitions totaling 302 units bringing Killam's portfolio to 6,435 units. In Prince Edward Island, Killam has acquired an apartment portfolio totaling 156 units, increasing its market share in the area to 4.2%. The newly acquired portfolio consists of: - Nevada Court - an apartment complex containing 48 units located on Nevada Court in Summerside. The property contains 48 two-bedroom units, with an average rent of $647/month. - Country Place - an apartment complex containing 39 units located on Leslie Crescent in Charlottetown, consisting of one one-bedroom unit, 34 two-bedroom units and four three-bedroom units with an average monthly rent of $738/month. - Horton Park - a 69 unit apartment complex in Charlottetown, consisting of eight one-bedroom units, 24 two-bedroom units and 37 three-bedroom units with an average monthly rent of $643/month. Horton Park is an excellent location overlooking the Charlottetown Harbour. The total purchase price of these properties was approximately $8.05 million ($51,602/unit). The purchase price will be satisfied by arranging a new first mortgage of $6,018,750 with an interest rate of 5.57%, and the balance in cash. Killam also acquired Bayview Estates, its second manufactured home community outside Atlantic Canada, increasing its total manufactured home community portfolio to 2,217 sites. Bayview Estates contains 146 sites and is located in Trenton, Ontario. The community is fully occupied with an average monthly rent of $189/month. The purchase price was approximately $2.6 million ($17,808/pad) and was satisfied by arranging a new first mortgage of $1,950,000 at 4.9%, with the balance in cash. Bayview Estates is situated on 60 acres, of which 26 acres are undeveloped. Philip Fraser, President and Chief Executive Officer of Killam commented: "Killam continues to enjoy a very good pipeline of potential acquisitions in 2005, and management expects to close a number of accretive acquisitions in the next two months. Killam has access to ample financial resources to pursue additional property acquisitions throughout Eastern Canada." Killam Properties Inc. is a leading real estate company based in Halifax, Nova Scotia. Killam is the largest owner and manager of multi family residential rental properties and manufactured home communities in Atlantic Canada. 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. https://www.newswire.ca/en/releases/orgDisplay.cgi?okey=91583 For further information PLEASE CONTACT: Killam Properties Inc.: Philip Fraser, President and CEO, Phone: [phone], Fax: [phone] Robert Richardson, CA, EVP & CFO, Phone: [phone], Fax: [phone] www.killamproperties.com -------------------------------------------------------------------------------- Source: Killam Properties Inc.