Allied Properties Real Estate Investment Trust

Allied Properties Real Estate Investment Trust

March 11, 2009 09:20 ET

Allied Properties Real Estate Investment Trust Announces Agreements to Acquire Underground Commercial Parking Spaces Adjacent to Properties in the King & Spadina Area of Downtown Toronto

TORONTO, ONTARIO--(Marketwire - March 11, 2009) - Allied Properties REIT (TSX:AP.UN) announced today that it has entered into agreements to purchase the following properties for approximately $5 million:

(i) an undivided 50% interest in 92 underground commercial parking spaces to be constructed as part of the Victory Lofts condominium project by BLVD Developments at 478 King Street West in Toronto, which is adjacent to three of Allied's properties, 468 King Street West, 500-522 King Street West and the King-Brant underground commercial parking structure; and

(ii) an undivided 75% interest in 71 underground commercial parking spaces to be constructed as part of the SIX50KING condominium project by Freed Developments at 650 King Street West in Toronto, which is adjacent to Allied's 662 King Street West and in close proximity to its 602-606 King Street West.

Each acquisition is conditional upon final condominium registration and is expected to close in 2011. Allied will manage both underground commercial parking structures on behalf of the co-owners, giving it operating control over 163 parking spaces in addition to the 208 parking spaces at its King-Brant underground commercial parking structure and the surface parking spaces adjacent to its numerous properties in the King & Spadina area.

"These will be small but highly strategic acquisitions for us," said Michael Emory, President and CEO. "Not only will they afford us a reasonable yield on our capital, they'll add meaningfully to the competitive advantages of some of our best Class I office properties in the King & Spadina area."

This press release may contain forward-looking statements with respect to Allied, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", intends", "believe" or "continue" or the negative thereof or similar variations. Allied's actual results and performance discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the Allied's Annual Information Form which is available at These cautionary statements qualify all forward-looking statements attributable to Allied and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release, and Allied had no obligation to update such statements.

Allied Properties REIT is the leading provider of Class I office space in Canada, with portfolio assets in the urban areas of Toronto, Montreal, Winnipeg, Quebec City and Kitchener. Its objectives are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.

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