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Killam Apartment REIT Announces Agreement To Acquire a $190.5 Million Portfolio in Ontario and a $95 Million Bought Deal Public Offering of Trust Units
Killam Apartment REIT Announces Agreement To Acquire a $190.5 Million Portfolio in Ontari...
About this update from Killam Apartment Reit
[{"type":"text","content":"\n \n \n \n Killam Apartment REIT Announces Agreement To Acquire a $190.5 Million Portfolio in Ontario and a $95 Million Bought Deal Public Offering of Trust Units\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n /NOT FOR DISTRIBUTION TO\n \n THE UNITED STATES\n \n NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n \n THE UNITED STATES\n \n /\n \n \n \n HALIFAX, NS\n \n ,\n \n May 25, 2021\n \n /CNW/ - Killam Apartment REIT (\"Killam\" or the \"REIT\") (TSX: KMP.UN) is pleased to announce that it has agreed to acquire a four-property, 11-building portfolio totaling 785 units in\n \n Kitchener\n \n and\n \n Waterloo, ON\n \n (the \"KW Portfolio\") for approximately\n \n $190.5 million\n \n (approximately\n \n $243,000\n \n per door). Upon completion of the KW Portfolio acquisition, the REIT's\n \n Ontario\n \n portfolio will significantly increase to 3,342 units, with an additional 485 units under development.\n \n \n The REIT also announced today that it has reached an agreement with a syndicate of underwriters led by RBC Capital Markets to issue to the public, on a bought deal basis, 5,135,200 trust units (the \"Units\") for\n \n $18\n \n .50 per Unit for gross proceeds of\n \n $95,001,200\n \n (the \"Offering\").\n \n \n \n Killam\n \n has granted the Underwriters an over-allotment option for the purposes of covering the Underwriters' over-allocation position for an additional 770,280 Units, exercisable up to 30 days after closing of the Offering.\n \n \n \n Killam\n \n intends to use the net proceeds from the Offering to finance a portion of the purchase price for the KW Portfolio, to repay amounts outstanding on its credit facility (current outstanding balance of approximately\n \n $51 million\n \n ), and the remainder, if any, to fund future acquisitions and developments and for general trust purposes.\n \n \n The KW Portfolio is currently 98% occupied and comprises a mix of bachelor (9 units), 1-bedroom (130 units), 2-bedroom (631 units) and 3-bedroom (15 units) units with an average unit size of appro...