Killam Properties Inc. Closes $46.1 Million Public Offering of Common Shares

/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

HALIFAX, Nov. 28, 2014 /CNW/ - Killam Properties Inc. (TSX: KMP) ("Killam") is pleased to announce that it has closed its previously announced public share offering (the "Offering"), on a bought-deal basis, of common shares (the "Shares") to the public at a price of $10.55 per Share (the "Offering Price"). Killam issued 4,370,000 Shares, including 570,000 Shares on the exercise of an Over-Allotment Option (as defined below), for gross proceeds of approximately $46.1 million.

The Offering was made pursuant to an underwriting agreement with a syndicate of underwriters led by RBC Dominion Securities Inc. and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., Raymond James Ltd., Dundee Securities Ltd., GMP Securities L.P. and Brookfield Financial Corp. (collectively, the "Underwriters"). The Underwriters were granted the option (the "Over-Allotment Option") to purchase up to an additional 570,000 Shares at the Offering Price to cover over-allotments, if any, and for market stabilization purposes, which they exercised in full.

Killam intends to use the net proceeds from the Offering to partially fund the previously announced acquisition of interests in four apartments located in Mississauga, London, Ottawa and Calgary (the "Acquisitions") and for general corporate purposes. Killam's portion of the purchase price for the Acquisitions is $97.1 million. In the event Killam is unable to consummate one or more of the Acquisitions, Killam intends to use the net proceeds of the Offering otherwise allocated to such Acquisitions to fund future acquisitions and for general corporate purposes.

The Shares have not and will not be registered under the United States Securities Act of 1933, as amended, and state securities laws. Accordingly, the Shares may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.

Corporate Profile

Killam Properties Inc., based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating, and developing multi-family apartments and manufactured home communities.

Note: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain statements in this report may constitute forward-looking statements relating to the Acquisitions, the use of proceeds of the Offering, our operations and the environment in which we operate, which are based on our expectations, estimates, forecast and projections, which we believe are reasonable as of the current date. Such forward-looking statement involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Killam 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 does not undertake to update any of such forward-looking statements.

SOURCE: Killam Properties Inc.

Killam Properties Inc., Philip Fraser, President & CEO, [email protected], [phone]; or Dale Noseworthy, CA, CFA, Vice President, Investor Relations and Corporate Planning, [email protected], [phone]