Allied Properties REIT (TSX:AP.UN) announced today that it has entered into
agreements to purchase the following properties for $112 million:




                                         Total    Office    Retail   Parking
Address                                    GLA       GLA       GLA    Spaces
----------------------------------------------------------------------------
Leeson and Lineham Block, Calgary       30,770    25,594     5,176         4
Westcoast Building, Calgary             19,499    19,499         0         9
The Chambers, Ottawa                   211,110   196,328    15,951       144
----------------------------------------------------------------------------
Total                                  261,379   241,421    21,127       157
----------------------------------------------------------------------------



Allied also announced that it has entered into an agreement to sell 67 Richmond
Street West in Toronto for $13.5 million. 


With the acquisitions announced today, Allied has completed or announced 23
acquisitions in 2011 for $461 million. "On closing of these acquisitions, we'll
have established five new target markets in a short period of time," said
Michael Emory, President & CEO. "While adhering to our investment and operating
focus, we've propelled our urban office portfolio to a national scale and
significantly boosted our annual AFFO per unit in the process." 


Calgary Acquisitions

Located on the Stephen Avenue Mall, immediately west of Fashion Central, which
Allied acquired earlier this year, the Leeson and Lineham Block (209 - 8th
Avenue S.W.) is a restored heritage property comprised of 30,770 square feet of
GLA and four surface parking spaces. It is fully leased to tenants consistent in
character and quality with Allied's tenant base. Built in 1910 as one of several
business blocks, the property was extensively restored and renovated between
1998 and 2000. It is on the Inventory of Evaluated Historic Resources maintained
by the City of Calgary. 


Located on the 11th Avenue S.W., in close proximity to the Roberts Block, which
Allied acquired earlier this year, the Westcoast Building (522 - 11th Avenue
S.W.) is a restored heritage property comprised of 19,499 square feet of GLA and
nine surface parking spaces. It is fully leased to tenants consistent in
character and quality with our tenant base. Built in 1912 as a warehouse, the
property was extensively restored and renovated in the 1980s. It is on the
Inventory of Evaluated Historic Resources maintained by the City of Calgary. 


Ottawa Acquisition

Located on the southwest corner of Sparks and Elgin, just west of Confederation
Square and a half-block south of the Parliament Buildings, The Chambers (40-46
Elgin Street) is comprised of four contiguous structures, three of which are
heritage buildings and the fourth of which is a 14-storey office building.
Similar to what Allied envisages with respect to its large-scale intensification
project at QRC West, the property is comprised of 211,110 square feet of GLA and
144 underground parking spaces. It is 96.5% leased to investment-grade tenants,
including the National Capital Commission (70% of the GLA) and Shaw
Communications. The leases have a weighted average lease term in excess of 6.7
years. The heritage components of the property--The Scottish-Ontario Chambers,
The Central Chambers and The Bell Block--were constructed between 1867 and 1891,
renovated extensively in 1994 and are designated under the Ontario Heritage Act.
The newer component of the property was constructed in 1994. 


Toronto Disposition

Located on the south side of Richmond Street, just west of the intersection with
Bay Street, 67 Richmond Street West is comprised of 50,122 square feet of GLA
and is fully leased. It has no strategic significance in the context of Allied's
portfolio. On disposition at the sale price, the property will have afforded a
very high internal rate of return to Allied's unitholders over a six-year
period. 


Closings and Financing 

The disposition is expected to close in December of 2011, and the acquisitions
are expected to close by the end of February, 2012, in all cases subject to
customary conditions. The purchase price for the three properties to be acquired
represents a capitalization rate of approximately 6.7% applied to the annual net
operating income ("NOI") in year one. On closing, the Leeson and Lineham Block
will be subject to a first mortgage financing in the approximate principal
amount of $5.24 million, having a term expiring in July of 2013, bearing
interest at 4.25% per year and payable in blended instalments of principal and
interest based on a 25-year amortization period. The Chambers will be subject to
a first mortgage in the principal amount of $52.4 million, having a term
expiring in September of 2018, bearing interest at an effective rate of 3.8% per
year and payable in blended instalments of principal and interest based on a
20-year amortization period. The remaining property will be free and clear on
closing. Allied will fund the acquisitions with proceeds from recently completed
first mortgage financings.


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 International Financial
Reporting Standards ("IFRS") and does not have any standardized meaning
prescribed by IFRS. Capitalization rate is presented in this press release
because management of Allied believes that this non-IFRS 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 IFRS and does not have any standardized
meaning prescribed by IFRS. NOI is presented in this press release because
management of Allied believes that this non-IFRS 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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