Allied Properties Real Estate Investment Trust Announces Pivotal Leasing Achievements in Montreal

TORONTO, ONTARIO--(Marketwire - June 28, 2011) - Allied Properties REIT (TSX:AP.UN) today announced that it has substantially completed the re-leasing at Cité Multimédia. "This is an important step forward for us that will help establish the basis for significant same-asset NOI growth in 2012," said Michael Emory, President & CEO. "Cité Multimédia will have a higher level of net rent in 2012 than we anticipated at the time of acquisition in 2007, a much improved tenant-mix and a better than normal lease-maturity schedule."

Allied decided last year not to renew a large lease at Cité Multimédia that expired at year-end. The non-renewal left Allied with six contiguous office floors to lease and resulted in the temporary decline in its leased area. Allied has now completed the following re-leasing transactions:

• one and one-half floors to an existing tenant, SAP Labs, for a term of 10 years commencing September 1, 2011;

• two floors to a new tenant, Desjardins, for a term of 10 years commencing November 1, 2011; and

• two floors to a new tenant, Abitibi Bowater, for a term of 10 years commencing January 1, 2012.

The annual net rental rates achieved on the re-leasing fully validate Allied's decision not to renew the large lease.

Allied also announced that it has finalized the early renewal of Ubisoft's lease of 248,821 square feet at 5505 Saint-Laurent Boulevard for a term of 10 years from February 1, 2013. "We've now addressed our last large-scale expiry in the 2011 to 2013 timeframe," said Mr. Emory. "Along with other recent leasing success, this has extended our weighted average lease term considerably."

Cautionary Statements

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 www.sedar.com. The 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 has no obligation to update such statements.

Allied Properties REIT is a leading owner, manager and developer of urban office environments that enrich experience and enhance profitability for business tenants operating in Canada's major cities. Its objectives are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.