HALIFAX, Nova Scotia, March 29, 2018 (GLOBE NEWSWIRE) --
Killam Apartment REIT (TSX:KMP.UN) is pleased to announce it has acquired a prime mixed-use office and retail property with surplus land ideal for multi-family development in Waterloo, Ontario, for $77.8 million. Westmount Place is a 297,000 square foot project constructed on 14.7 acres that features a grocery-anchored retail plaza (87,311 sf) with a partial second-storey office component (21,441 sf) and a four-storey office complex (188,702 sf leased 100% to Sun Life Assurance Company of Canada). The property also includes 88,000 square feet of land for development fronting on Erb Street West with the potential to construct up to 600 apartment units. Westmount Place is well-located, close to downtown Waterloo, both the University of Waterloo and Wilfrid Laurier University, the Waterloo Memorial Recreation Complex and the Waterloo Public Library.
The tenant base for Westmount Place includes national tenants representing 84% of annualized rental revenue, including Sun Life Financial, a national grocer (scheduled to open in September, 2018), Pharmasave, Michaels and Royal Bank of Canada. The weighted average lease term of all Westmount tenants is 8 years.
Starting this spring Killam intends to focus on the significant multi-residential opportunity the site offers. This will include a consultation and master planning process which seeks to maximize pedestrian connectivity and green space throughout the site, including by integrating new landscaping. The master plan will also include energy and storm waste management designs to compliment the planned multi-residential developments. Killam is targeting commencement of construction of the first phase of its apartment complex within the next 24 months.
“This property has all the key elements we look for when acquiring multi-family development sites - a great neighbourhood with a large employment base, and close to transit, shopping and entertainment,” noted Philip Fraser, Killam’s President and CEO. “With the ownership of neighbouring Westmount Place, which includes a national grocery anchor with adjacent, pharmacy, restaurants and medical services, we have control of the entire site, maximizing the future potential of the property. With quality, long-term commercial tenants, a 5.7% all cash yield and the potential to develop up to 600 apartment units, we are very excited about the opportunities this acquisition offers.”
Downtown Calgary Development Sites
On February 22, 2018, Killam purchased a 40% interest in a 32,548 square foot development site for $7.2 million ($18 million for 100%) on 4th Avenue SW in Calgary with its Grid 5 partners. The site represents a premium location in downtown Calgary, adjacent to Killam’s 307-unit Grid 5 Apartment Building. The new parcel is located immediately adjacent to a 30,542 square foot development site in which Killam already owns a 50% interest.
As part of the acquisition, Killam reduced its interest in the existing parcel by 10% such that it now owns a 40% interest in the combined development site. The combined site represents the entire north half of the block between 5th and 6th Streets and includes direct access to Calgary’s Plus 15 interior elevated walkway system. This will provide residents of Grid 5 and the new buildings with year-round inside access to downtown Calgary. Killam and its partners expect to build three multi-residential high-rise buildings with up to 1,170 units on the combined site over the next five years.
$39 Million of Previously Announced Acquisitions Closed
On February 28, 2018, Killam closed the previously announced $33.0 million acquisition of The Killick, a new 12-storey, 110-unit, concrete apartment building located at 49 Kings Wharf on the Dartmouth side of the Halifax waterfront. The Killick is located in Dartmouth’s central business district, with many restaurants and bars in close proximity, and offers tenants spectacular views of Halifax’s waterfront.
In addition, on March 16, 2018, Killam completed the purchase a 1.8 acre development site at the corner of Weber Street East and Scott Street in Kitchener, Ontario, for $6.0 million. The site is approved for a 141 unit development. Killam has started the design process for this development and expects to begin construction in 2019.
“These transactions almost double our development pipeline and increase our presence in Ontario and Alberta as we continue to geographically diversify our portfolio,” noted Philip Fraser. “We are looking forward to building a vibrant community in the City of Waterloo. We have been searching for additional development sites in the Kitchener-Waterloo-Cambridge region given the success of our Saginaw Garden and Saginaw Park developments in Cambridge. Westmount Place, as well as the above noted acquisition in downtown Kitchener, provide us with future growth of 750 units of development in this high-growth region.”
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 $2.3 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.
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President & CEO
Note: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain statements in this press release 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 Apartment REIT to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For more exhaustive information on these risks and uncertainties, you should refer to our most recently filed annual information form which is available at www.sedar.com. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made and should not be relied upon as of any other date. Other than as required by law, Killam Apartment REIT does not undertake to update any of such forward-looking statements.
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Source: Killam Apartment REIT