Allied Properties REIT (TSX:AP.UN) announced today that it has entered into
agreements to purchase the following properties for $51 million:




Address                            Total   Office   Retail Basement  Parking
                                     GLA      GLA      GLA      GLA   Spaces
----------------------------------------------------------------------------
8-10 Bastion Square, Victoria     32,485   22,399   10,086        0       10
353 Water Street, Vancouver       27,681   20,097    3,773    3,811        5
119 - 6th Avenue S.W., Calgary    62,700   62,700        0        0       25
129 - 8th Avenue S.W., Calgary     8,474    2,288    5,336      850        3
----------------------------------------------------------------------------
Total                            131,340  107,484   19,195    4,661       43
----------------------------------------------------------------------------



"These acquisitions will establish a solid foothold in Victoria and strengthen
our foothold in each of Vancouver and Calgary," said Michael Emory, President &
CEO. "We see great potential to expand our urban office platform in Western
Canada. By the third quarter, we'll set up a regional office in Calgary to
propel and manage growth in our Winnipeg, Calgary, Vancouver and Victoria target
markets." 


Victoria Acquisition 

Located in historic Bastion Square on Wharf Street, the MacDonald Block (8-10
Bastion Square) is a Class I property with 32,485 square feet of gross leasable
area ("GLA") and 10 surface parking spaces. It is 93% leased to tenants
consistent in character and quality with Allied's tenant base, including the
Auditor General of British Columbia. Built in 1863, the building on the property
was extensively restored and renovated in the 1990s.


Vancouver Acquisition 

Located in Gastown on Water Street, near the intersection with Cambie Street,
353 Water Street is a Class I property with 27,681 square feet of GLA and five
surface parking space. It is fully leased to tenants consistent in character and
quality with Allied's tenant base, including Metasoft. Built in the early 1900s
on the 300 Block of Water Street, the building on the property was extensively
restored and renovated in 1977. The current zoning and the building structure
permit the addition of two office floors that together would add 10,000 square
feet of GLA to the property.


Calgary Acquisitions 

Located adjacent to the Lougheed Building, which Allied acquired last year, the
Telephone Building (119 - 6th Avenue S.W.) is a Class I property comprised of
62,700 square feet of GLA and 25 underground parking spaces. It is fully leased
to tenants consistent in character and quality with Allied's tenant base,
including Scotia Capital and Worley Parsons. Built in the 1920s and known
initially as the Alberta Government Telephones Building or the AGT Building, the
two buildings on the property were integrated and extensively restored and
renovated in 2006. With the Lougheed Building and the Telephone Building, Allied
will control a full 163 feet of frontage on 6th Avenue in close proximity to the
Bow, which is nearing completion and which is expected to become the new
focal-point of downtown Calgary.


Located amidst well restored heritage properties on the Stephen Avenue Mall, the
Bang & Olufsen Building (129 - 8th Avenue S.W.) is comprised of 8,474 square
feet of GLA and three surface parking spaces. It is fully leased to tenants
consistent in character and quality with Allied's tenant base. Built to a high
standard in 2002, the building on the property was designed to resemble and
integrate with the surrounding heritage properties.


Closing and Financing of Acquisitions 

The acquisitions are expected to close in April and May of 2011, subject to
customary conditions. The purchase price for the four properties represents a
capitalization rate of approximately (6.7)% applied to the annual net operating
income ("NOI"). On closing, the Telephone Building will be subject to
first-mortgage financing in the approximate principal amount of $16 million,
having a term expiring October 31, 2016, bearing interest at 5% per year and
being payable in blended monthly instalments of principal and interest based on
a 20-year amortization period. On closing, the remaining properties will be free
and clear of mortgage financing. Allied will finance the equity component of the
acquisitions with a portion of the net proceeds from the equity offering
completed on March 14, 2011, and will place first mortgage financing on the
remaining properties as it deems advisable.


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. 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 Allied's Annual Information Form, 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 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.
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