Killam Apartment REIT announced the closing of two multi-res acquisitions totaling $26.2 million, consisting of 153 apartment units in London, Ontario, and 66 units in Calgary, Alberta. These acquisitions build on Killam’s existing presence in London and Calgary and align with Killam’s strategic goals of accretive growth and geographic diversification.
On December 22, 2016, Killam acquired a portfolio of five buildings in London, which includes: 960, 970 & 980 Cheapside Street, 298 Fairview Avenue and 1447 Trafalgar Street.
The acquisition cost was $13.4 million ($87,500 per unit). The acquisition was funded with $9.5 million in mortgage debt and cash-on-hand. Killam’s London portfolio now totals 417 rental units and including this acquisition, Killam completed $70.0 million in acquisitions in 2016, in-line with Management’s acquisition target to exceed $50 million for the year.
On January 16, 2017, Killam acquired Spruce Grove Lane Apartments, its second apartment property in Calgary. The property, located on a 3-acre site at 1802-92 Avenue SW in the Pump Hill neighbourhood, consists of 66 townhouse-style apartments. The acquisition cost was $12.8 million ($195,000 per unit). Management plans to increase the net operating income for this very well located asset with a combination of professional management and capital upgrades. This acquisition increases Killam’s Calgary portfolio to 373 rental units.
“We are pleased to grow our rental portfolios in both London and Calgary,” noted Philip Fraser, President and CEO. “We have been monitoring the Calgary rental market over the last year and Spruce Grove Lane Apartments, located in a sought-after residential neighbourhood, has great upside. We have the opportunity to add value and grow net operating income at this property.”