text: **Complementing Acquisitions with**
  **Developments**
  
  Development is an important component of 
  Killam’s future growth. We are gaining expertise 
  as developers, resulting in both increased 
  efficiencies and returns. We completed four 
  new developments in 2013, representing an 
  investment of $70 million. Two of the buildings 
  leased-up within three months, and two are 
  expected to be substantially leased by the middle 
  of 2014. The slower than expected lease-up 
  at S2 in Halifax is attributable to a higher than 
  normal amount of new units coming to market 
  in recent years, leading to increased competition 
  at the high-end of the market. At The Plaza in 
  Fredericton, a soft home sales market is leading to longer 
  than expected lease-up. We will realize the full financial 
  benefit from these buildings once they are fully occupied. 
  
  We currently have two new developments underway. 
  Chelsea Place, a 101-unit, 2-building complex located in St. 
  John’s, is expected to be completed in the third quarter of 
  2014. Saginaw Gardens, a 122-unit building in Cambridge, 
  on land acquired in January 2013, was started in December 
  2013 and will be completed in 2015. The total investment 
  in the two developments is approximately $46 million, 
  representing 3% of our balance sheet. We expect to limit our 