Killam Properties Inc. (TSX: KMP) is pleased to announce that it has completed the acquisition of 1090 Kristin Way, a 102-unit apartment building in Ottawa, Ontario. The eight-storey concrete building is centrally located and adjacent Killam's 621 Cummings Avenue property in the city's East End. The building includes 7 bachelor units, 23 one-bedroom units and 72 two-bedroom units, and has an average rental rate of $817 per month. The purchase price of $10.35 million ($101,500 per suite) was satisfied with cash. The capitalization rate on the acquisition is 5.8%.

Killam has also agreed to acquire a new 83-unit luxury apartment building located at 200 Royale Boulevard in Halifax, Nova Scotia, adjacent The Linden, which was acquired in December 2011. Construction of 200 Royale was completed in December 2012 and is currently 32% occupied. The acquisition includes a rental guarantee of 90% occupancy through to November 2013, minimizing the Company's lease-up risk. The four-storey, concrete apartment building includes underground parking, a social room and a fitness centre. The building's total square footage is approximately 180,000 square feet, and contains 1 one-bedroom unit, 77 two-bedroom units and 5 three-bedroom units. The average rent of $1,547 per unit reflects the building's spacious units, with an average size of 1,400 square feet and includes six appliances and high-end finishes. The purchase price of $19.1 million ($230,000 per suite) represents a capitalization rate of 5.6% (on 97% occupancy). The closing is scheduled to be completed by the end of February 2013 and is expected to be satisfied with a new CMHC insured mortgage (65%) and cash.

In addition, on January 15, 2013, Killam acquired a 5.2 acre development site on Saginaw Parkway in Cambridge, Ontario. Killam owns two luxury buildings (225 units) in Cambridge and has identified the city as one of its target markets for growth in Ontario. The site, acquired for $4.0 million, is currently zoned for a maximum height of seven storeys and density of 180 units. A 125-unit building is planned for the first phase of a two phase development, with construction expected to start in the second half of 2013.

"We are pleased to start the year with $29 million in apartment acquisitions, and the addition of a premium lot for development in Cambridge," noted Philip Fraser, Killam's President and CEO. "These acquisitions complement our existing portfolios in each city. Our focus of growing the portfolio of properties in each of our core markets through both acquisitions and development is expected to lead to increased economies of scale and market presence."