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DISSEMINATION IN THE UNITED STATES/

HALIFAX, July 2 /CNW/ - Killam Properties Inc. (TSX:KMP) is pleased to announce that it has closed its previously announced public share offering ("the Offering"), on a bought-deal basis, of 4,255,000 shares, after full exercise of the underwriters' over-allotment option, to the public at a price of $5.80 per share for gross proceeds of $24.7 million.

The Offering was made pursuant to an underwriting agreement with a syndicate of underwriters lead by RBC Dominion Securities Inc. and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., TD Securities Inc., Scotia Capital Inc., Canaccord Capital Corporation, National Bank Financial Inc., Beacon Securities Limited, Dundee Securities Corporation, Genuity Capital Markets, Macquarie Capital Markets Canada Ltd. and Raymond James Ltd.

Killam intends to use the proceeds from the Offering to fund future property acquisitions, to repay indebtedness, including amounts incurred under its acquisition bridge facility, and for general corporate purposes.

The shares being issued pursuant to the Offering have not been and will not be registered under the United States Securities Act of 1933 and state securities laws. Accordingly, such shares may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration.

Killam Properties Inc., based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning and operating 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 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 statements 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.