Killam Properties Inc. acquired Kuwait Finance House’s (KFH) entire 75 per cent indirect interest in Kanata Lakes Apartments (146 units, located in Ottawa) and 1355 Silver Spear Road (199 units plus surplus land for approximately 110 additional units, located in Mississauga). In addition, Killam acquired KFH’s entire 75 per cent indirect interest in 180 Mill Street (127 units, located in London), thereby increasing Killam’s ownership to 100 per cent in the property. Prior to the transaction, Killam’s and KFH’s effective interests in each of Kanata Lakes Apartments, 1355 Silver Spear Road and 180 Mill Street were held through a partnership between Killam and KFH, which was structured in accordance with an Ijara lease under Shariah law. Upon completion of transaction and the disposition of KFH’s effective interests in the three properties, the partnership between Killam and KFH was dissolved. The purchase price for the acquisition of KFH’s 75 per cent interest in the three properties equated to $88.9 million (including assumption of third party debt).
Bennett Jones LLP acted for Killam Properties Inc. The Bennett Jones team included Ron Barron, Kahlan Mills and Michael Ramsay (corporate) and Greg Johnson (tax).
Stikeman Elliott LLP acted for Kuwait Finance House. The Stikeman Elliott team included Simon Romano and Marshall Eidinger (corporate), John Lorito and Kyle Lamothe (tax). The Stikeman Elliott team also structured the original Shariah structure, which may be one of the first such structures accomplished in Canada.