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Killam Apartment REIT expands credit facility, closes on C$61M of asset buys

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Killam Apartment REIT expands credit facility, closes on C$61M of asset buys

Killam Apartment REIT increased its credit facility by C$40 million and closed on C$60.7 million of acquisitions.

The C$70 million facility comes with an option to expand the credit line by an additional C$20 million, resulting in total availability of C$90 million. The facility is allocated for acquisitions, developments and for general trust purposes.

In December, Killam bought the 106-unit Valhalla Apartments building in Halifax, Nova Scotia, for C$13.0 million and the eight-building, 106-unit Fairview Terrace complex in London, Ontario, for C$8.5 million. It also acquired Tisbury Crossing in Sherwood Park, Alberta, for C$39.2 million. In early 2018, Killam expects to arrange Canada Mortgage and Housing Corp.-insured mortgages for these assets, which it bought debt-free with a weighted-average capitalization rate of 5.6%.

In a release, Killam President and CEO Philip Fraser said the expanded line of credit, mortgage proceeds from the recently purchased assets, and cash on hand should give the company more than C$300 million of buying capacity heading into 2018.

Royal Bank of Canada provided the credit facility.