Killam Apartment REIT (KMP-UN-T) has closed on two apartment acquisitions, one near its own backyard in Moncton and the second in Edmonton where the Halifax-based REIT has been increasing its presence. Both buildings also align with Killam’s strategic goals to source newer properties and continue diversifying geographically.
The first acquisition is LINK Apartments at Ellerslie, an eight-storey, concrete apartment building located in the growing southwest portion of Edmonton. This newly constructed building contains 105 units with 163 underground parking stalls and a large rooftop patio.
Killam paid $31.5 million ($300,000 per unit) for the property.
“We are pleased to grow our apartment portfolios in Edmonton and Moncton,” said Philip Fraser, Killam’s president and CEO, in a prepared statement.
“The acquisition of the Link builds on our base of high-quality, newly constructed assets in the Edmonton market and the Moncton asset is a strong complement to our portfolio in the growing Dieppe market.
“We have an active acquisition pipeline and continue to seek opportunities to accretively grow our portfolio across Canada.”
The two acquisitions
Still in its initial lease-up, the Link is currently 88 per cent leased. The average unit size is 830 square feet and has condo-quality finishes.
It was developed and built by Edmonton-based Regency Developments.
The addition brings Killam’s Edmonton portfolio to 579 rental units.
Killam has also acquired 145 Canaan Dr. in Moncton. The property consists of a new four-storey, wood-frame apartment building, costing $9.5 million.
The apartment building contains 48 units with high-quality finishes and 38 underground parking stalls. This property is well-located and shares a parking lot with Killam’s existing 155 Canaan apartment building.
The property is 100 per cent occupied and increases Killam’s Moncton portfolio to 1,804 rental units.
Both acquisitions were funded with cash-on-hand from Killam’s recent equity offering. Killam has completed $186.2 million in acquisitions year-to-date, achieving its 2019 targets to grow the portfolio to over $3.0 billion, with a minimum annual acquisition target of $100 million.
About Killam Apartment REIT
Killam Apartment REIT is one of Canada’s largest residential landlords, owning, operating and developing a $3.2-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.