HALIFAX, Nova Scotia, Dec. 18, 2017 (GLOBE NEWSWIRE) — Killam Apartment REIT (TSX:KMP.UN) is pleased to announce $60.7 million of acquisitions. On December 15, 2017, Killam purchased Valhalla Apartments, a 106-unit building in Halifax, Nova Scotia, for $13.0 million ($122,000 per unit) and Fairview Terrace, an 8-building, 106-unit complex, in London, Ontario, for $8.5 million ($80,200 per unit). Additionally, Killam completed the previously announced $39.2 million acquisition of Tisbury Crossing in Sherwood Park, near Edmonton, Alberta on December 1, 2017. All three properties were acquired debt free; however, Killam expects to arrange CMHC-insured mortgages for these properties in early 2018. The weighted average capitalization rate for these acquisitions is 5.6%.
“These transactions complete our acquisition activity for 2017,” stated Philip Fraser, President and CEO. “We have invested over $200 million to acquire 850 units this year, including $150 million in Alberta and Ontario as we executed our strategy to increase geographic diversity.”
Increased Capital Flexibility with Expanded Line of Credit
Killam is also pleased to announce a $40 million increase to its credit facility. The $70 million facility, provided by Royal Bank of Canada, includes an option to increase the line by an additional $20 million, bringing the total availability to $90 million. The facility is available to finance acquisitions, developments and for general trust purposes.
“The expanded line of credit, cash on hand and mortgage proceeds from the three recently acquired properties will provide Killam with over $300 million of acquisition capacity heading into 2018,” stated Mr. Fraser.
About Killam Apartment REIT
Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada’s largest residential landlords, owning, operating and developing a $2.2 billion portfolio of apartments and manufactured home communities. Killam’s strategy to enhance value and profitability focuses on three priorities: 1) increasing earnings from existing operations, 2) expanding the portfolio and diversifying geographically through accretive acquisitions, with an emphasis on newer properties, and 3) developing high-quality properties in its core markets.
For information, please contact:
Robert Jenkins, CPA, CA
Director, Investor Relations
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. 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