Killam to buy 50% interest in Charlottetown Mall
The deal is worth $23.7 million
An Atlantic real-estate company has entered into a multi-million dollar partnership to develop the Charlottetown Mall property.
Killam Apartment REIT, which owns and operates several real-estate properties across P.E.I., announced Thursday that it has agreed to buy 50 per cent interest in the Charlottetown Mall from RioCan REIT for $23.7 million.
The investment involves almost 13 hectares (32 acres) of land on which Atlantic Superstore, the Charlottetown Mall and the Cineplex movie theatre sit.
Up to 300 residential units planned
In a news release, Killam said there are plans to develop up to 300 residential units on the property that the company would manage.
RioCan would continue to manage the retail portion of the property. The deal is expected to close on May 17.
"Charlottetown Mall is probably one of the busiest commercial nodes in Prince Edward Island and we're pretty excited about it," said Tim Banks, who sits on the board of directors of Killam. Banks is also president and CEO of the APM Group of Companies.
"We will be bringing some ideas to the centre with respect to adding residential and recreational and enhancing the property to make it grow."
Potential for affordable housing units
Banks said the company is not releasing details on the kinds of residential and entertainment developments that might be built, or where on the property they would be located.
He did suggest the development would help with Charlottetown's low vacancy rate, and possibly provide affordable housing units to the market.
"Hopefully we'll be able to bring some affordable components to that as well. So we will wait and see. We have to work with the city and we have to work with the province when it comes to that aspect."
Banks said it was exciting to partner with a national company and that Killam would "bring a little more local knowledge to the property."