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.
Contacts: Allied Properties REIT Michael R. Emory President and
Chief Executive Officer (416) 977-0643
memory@alliedpropertiesreit.com
Allied Properties Real E... (TSX:AP.UN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Allied Properties Real E... (TSX:AP.UN)
Historical Stock Chart
From Sep 2023 to Sep 2024