newsHALIFAX, July 14 /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 three acquisitions totaling 261 units bringing Killam's portfolio to 9,839 units.
Killam has increased its ownership interest in Shaunslieve Apartments to 96% by acquiring an additional 36% interest (approximately 55 units). Shaunslieve Apartments is a well known, three-storey garden style 154 unit complex situated at 568 - 580 Bedford Highway in Halifax, Nova Scotia, overlooking the Bedford Basin. The portfolio contains 70 one-bedroom units, 71 two-bedroom units and 13 three-bedroom units, with an average two-bedroom rent of $740/month. The purchase price for Killam's 36% interest was $3.2 million ($58,148/unit), and was satisfied by assuming a proportionate share of the first mortgage totaling $1.4 million at 5.76% and the issuance of 84,906 shares at $2.65 per share, with the balance in cash.
Killam has acquired Greenhill Estates, a manufactured home community located in Antigonish, Nova Scotia, containing 60 lots, 46 which are occupied with an average monthly rent of $157/month. The purchase price for Greenhill Estates was approximately $650,000 ($10,533/pad) and was satisfied in cash. Greenhill Estates is situated on 30 acres. The acquisition adds to Killam's presence in the manufactured home community sector in Antigonish, where Killam already owns Glen Aire Estates, a 236 unit community that Killam is currently expanding by 26 lots, ten of which have already been leased. Upon completion of the expansion, Glen Aire Estates will contain 262 lots. A planned first phase of future development to Greenhill Estates will add an additional 25 lots, increasing it to an 85 lot park.
Killam has also acquired Pinehurst Estates and Lynnwood Gardens, two manufactured home communities located in Petawawa and Edwards, Ontario. The new acquisitions total 146 sites and are fully occupied with an average monthly rent of $268/month. The purchase price was approximately $1.725 million ($11,815/pad) and was satisfied by arranging a new first mortgage of $1.38 million for 10 years at a rate of 4.881%, with the balance in cash. Pinehurst Estates is situated on 54 acres, and Lynnwood Gardens is situated on 16 acres.
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.
/For further information: Killam Properties Inc. - Philip Fraser, President and CEO, Phone: (902) 453-4536, Fax: (902) 455-4525; Robert Richardson, CA, EVP and CFO, Phone: (902) 442-9001, Fax: (902) 455-4525; www.killamproperties.com/