Killam Properties Inc.
Press Release
Feb 27, 2004
KILLAM
ENTERS TWO NEW
MARKETS
Halifax - Continuing its strategy of
consolidating the rental apartment sector in
Atlantic Canada and adjacent markets, Killam
Properties Inc. (TSX: KMP) is very pleased
to announce its entry into the Fredericton,
New Brunswick and Charlottetown, Prince
Edward Island markets. The company has
acquired 51 residential rental units in
Charlottetown, Prince Edward Island, and
54-units in Fredericton, New Brunswick.
Killam now owns 2,172 apartment/manufactured
home units in Nova Scotia, New Brunswick,
Newfoundland, and Prince Edward Island - a
significant increase from the 311 units
owned at this time last year.
The purchase price of $2,175,000 ($42,647
per unit) for 64 Belvedere Avenue, in
Charlottetown, Prince Edward Island was
satisfied by a vendor take-back mortgage of
$200,000, with the balance in cash. The
Belvedere Avenue property contains one
bachelor unit, 46 one-bedroom units, and 4
two-bedroom units with an average
one-bedroom apartment rent of $490 per
month. The property is a well maintained
adult building located close to all
amenities. According to the 2003 Canadian
Mortgage and Housing Corporation Rental
report for Charlottetown, the average
monthly rent in the area is $469 for a
one-bedroom and $595 for a two bedroom with
the overall vacancy for Charlottetown being
3.5%.
“I am very excited about Killam’s entry into
the Charlottetown residential marketplace,
and we are currently looking for more
quality buildings to buy”, stated Tim Banks,
a resident of Charlottetown and a Director
of Killam Properties Inc. since inception.
“Killam is a solid and well-managed company
and I think the move into Charlottetown is a
good sign for the residential market in
Prince Edward Island. This kind of
investment is good for business and for the
community”, Tim Banks concluded.
The purchase price of $3,100,000 ($57,407
per unit) for Venus Apartments, Fredericton,
New Brunswick was satisfied with cash. This
project contains a very favourable suite mix
of nine one-bedroom units, 18 two-bedroom
units, and 27 three bedroom units, with an
average rent of $715 for each two-bedroom
unit. According to the 2003 Canadian
Mortgage and Housing Corporation Rental
Report for Fredericton, the average monthly
rent in the area is $669 for a two-bedroom
unit and $824 for a three bedroom unit with
the overall vacancy for Fredericton being
1.6%.
Killam intends to place new first mortgages
on these properties within the next month at
an interest rate expected to be in the range
of 5.00% to 5.20% per annum. Accordingly,
both acquisitions will be highly accretive
to Killam’s financial performance.
Killam continues to actively investigate
additional acquisitions on similarly
accretive terms as it consolidates the
rental apartment market in Canada.
Killam is a publicly-traded real estate
company and is focused on the acquisition,
redevelopment, and management of
multi-family residential rental properties
and manufactured home communities in
Atlantic Canada and adjacent markets.
FOR FURTHER INFORMATION PLEASE CONTACT:
Killam Properties Inc.
Philip Fraser, President and CEO Robert
Richardson, CA, EVP & CFO
Phone: (902) 453-4536 Phone: (902) 442-9001
Fax: (902) 455-4525 Fax: (902) 455-4525
www.killamproperties.com
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.
