Allied Properties Real Estate Investment Trust Announces Continued Expansion Into Western Canada and Entry Into Downtown Vancouv
December 16 2010 - 7:51AM
Marketwired
Allied Properties REIT (TSX: AP.UN) announced today that it has
entered into agreements to purchase the following properties for
$39.4 million:
Parking
Address Total GLA Office GLA Retail GLA Spaces
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123 Bannatyne Avenue,
Winnipeg 20,511 20,511 0 0
840 Cambie Street, Vancouver 91,746 91,746 0 20
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Total 112,257 112,257 0 20
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"This is another good step forward," said Michael Emory,
President & CEO. "The acquisitions will augment our Winnipeg
portfolio and establish downtown Vancouver as our seventh target
market. Most importantly, they'll propel our urban office platform
to a national scale, something we believe will benefit both our
tenants and unitholders going forward."
Located in the Exchange District on the north side of Bannatyne
Avenue, immediately west of Allied's property at 115 Bannatyne, 123
Bannatyne is a Class I office property with 20,511 square feet of
gross leasable area ("GLA"). It is fully leased to tenants
consistent in character and quality with Allied's tenant base.
Located in Yaletown on Cambie Street, near the intersection with
Robson Street, 840 Cambie is a Class I office property with 91,746
square feet of GLA. It is fully leased to tenants consistent in
character and quality with Allied's tenant base, including
Microsoft and Ubisoft. Ubisoft also occupies space in Allied's
Montreal and Quebec City portfolios.
The acquisitions are expected to close before the end of the
year, subject to customary conditions. The combined purchase price
of $39.4 million represents a capitalization rate 6.7% applied to
the annual net operating income ("NOI") from the properties. On
closing, 123 Bannatyne will be free and clear and 840 Cambie will
be subject to a first mortgage in the principal amount of $20
million, having a term ending in May of 2013, bearing interest at
6% per year and payable in monthly instalments of interest only.
Allied will finance the remainder of the purchase price with the
proceeds from mortgage financings on other properties in its
portfolio.
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. The actual results and
performance of Allied 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 Annual Information Form of
the REIT which is available at www.sedar.com. These cautionary
statements qualify all forward-looking statements attributable to
Allied and persons acting on Allied's behalf. Unless otherwise
stated, all forward-looking statements speak only as of the date of
this press release and the parties have no obligation to update
such statements.
"Capitalization rate" is not a measure recognized under Canadian
generally accepted accounting principles ("GAAP") and does not have
any standardized meaning prescribed by GAAP. Capitalization rate is
presented in this press release because management of Allied
believes that this non-GAAP measure is relevant in interpreting the
purchase price of the properties being acquired. Capitalization
rate, as computed by Allied, may differ from similar computations
as reported by other similar organizations and, accordingly, may
not be comparable to capitalization rate reported by such
organizations.
NOI is not a measure recognized under Canadian GAAP and does not
have any standardized meaning prescribed by GAAP. NOI is presented
in this press release because management of Allied believes that
this non-GAAP measure is relevant in interpreting the purchase
price of the property being acquired. NOI, as computed by Allied,
may differ from similar computations as reported by other similar
organizations and, accordingly, may not be comparable to NOI
reported by such organizations.
Allied Properties REIT is a leading owner, manager and developer
of urban office environments that enrich experience and enhance
profitability for business tenants operating from Toronto,
Montreal, Winnipeg, Quebec City, Kitchener and Calgary. Its
objectives are to provide stable and growing cash distributions to
unitholders and to maximize unitholder value through effective
management and accretive portfolio growth.
Contacts: Allied Properties REIT Michael R. Emory President and
Chief Executive Officer (416) 977-9002
memory@alliedpropertiesreit.com
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