Allied Properties Real Estate Investment Trust Announces Continued Expansion in Western Canada and Acquisition of Large-Scale...
February 29 2012 - 7:39PM
Marketwired
Allied Properties REIT (TSX:AP.UN) announced today that it has
entered into agreements to purchase the following properties for
$46.7 million:
Total Office Retail
Address GLA GLA GLA Parking Spaces
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Woodstone Building, Calgary 31,023 31,023 20
535 Yates Street, Victoria 19,030 12,718 6,312 0
5445 de Gaspe Avenue, Montreal 502,693 502,693 150
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Total 552,746 546,434 6,312 170
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"This is a good start to our 2012 program, one that builds well
on last year's efforts," said Michael Emory, President & CEO.
"The Woodstone Building opens up a new sub-market for us in
Calgary, whereas 535 Yates Street adds to our foothold in Victoria.
5445 de Gaspe Avenue in Montreal is a great compliment to 5455 de
Gaspe Avenue, a large-scale upgrade property we acquired last
year."
Calgary Acquisition
Located in Inglewood, the Woodstone Building (1207 & 1215 -
13th Street S.E.) is a Class I property comprised of 31,023 square
feet of GLA and 20 surface parking spaces. It is 100% leased to
tenants consistent in character and quality with Allied's tenant
base. Built in 1911 as a wood mill, the property was extensively
restored and renovated for office use in 2009. It is on the
Inventory of Evaluated Historic Resources maintained by the City of
Calgary. Inglewood was established in 1875, not long after Fort
Calgary was built. Known initially as Brewery Flats, it officially
received the name of Inglewood in 1911 and has since evolved into a
destination shopping and creative district. It has Class I office
inventory of approximately 350,000 square feet.
Victoria Acquisition
Located on Yates Street, between Wharf and Government Streets,
535 Yates Street is a restored heritage property comprised of
19,030 square feet of GLA. It is 92% leased to tenants consistent
in character and quality with our tenant base. Built in the early
1900s, the property was extensively restored and renovated in the
1970s and again in 2009. It is a designated heritage property by
the City of Victoria.
Montreal Acquisition
Allied acquired 5455 de Gaspe Avenue in June of last year
because of its strategic location in Montreal's Plateau region and
its significant, near-term upgrade potential. 5445 de Gaspe is the
adjacent property to the south. It is a Class I property comprised
of 502,693 square feet of GLA and 150 underground parking spaces.
It is currently 97% leased to a large number of smaller tenants at
low rents. While carrying 5455 de Gaspe as a rental property,
Allied plans to upgrade the building and the tenant-base with a
view to boosting the annual net operating income ("NOI") materially
over a five-year period.
Closing and Financing of Acquisitions
The acquisitions are expected to close in late March and early
April of 2012, subject to customary conditions. The purchase price
for the three properties represents a capitalization rate of 7.5%
applied to the annual NOI. On closing, the properties will be free
and clear of mortgage financing. Allied will place first mortgage
financing on the properties as soon after closing as possible with
a view to locking-in the currently favourable cost of debt. On
closing of the acquisitions and anticipated mortgage financings,
Allied will continue to have a very conservative debt ratio and
significant internal liquidity and acquisition capacity.
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.
Contacts: Allied Properties Real Estate Investment Trust Michael
R. Emory President and Chief Executive Officer (416)
977-0643memory@alliedpropertiesreit.com
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