AP.UN Allied Properties Real Estate Investment Trust

Allied Properties REIT (TSX:AP.UN) today announced that it has initiated the
full construction process for Phase I of QRC West, an intensification project in
Toronto's rapidly transforming downtown area. Extending along the west side of
Peter Street, from Queen Street to Richmond Street, QRC West is an office-retail
development that Allied will complete in two phases. The first phase ("Phase I")
will integrate a restored brick-and-beam building, 134 Peter Street, with a new,
11-storey office structure having approximately 250,000 square feet of rentable
area that Allied plans to complete to a LEED Gold Standard. Completion of the
first phase is scheduled for early 2015. The second phase, which is now well
advanced in the municipal approval process, is expected to include a large
retail component on the southwest corner of Queen and Peter Streets.


"In our view, QRC West is the next step in the evolution of inner-city office
space," said Michael Emory, President & CEO of Allied. "By integrating a
distinctive part of Toronto's built legacy with new, LEED-certified structures,
it will provide business tenants with creative, efficient and environmentally
responsible workspace in one of the most vibrant, mixed-use areas of downtown
Toronto."


Allied also announced that it has entered into a lease with Sapient Corporation
for approximately 50,000 square feet of office space comprising the 8th and 9th
floors of Phase I for a term of 10 years commencing on March 1, 2015. This space
will serve as the Canadian head office of Sapient Corporation upon completion. 


"We're pleased with all aspects of this initial lease transaction," continued
Mr. Emory. "As importantly, we're in discussions with several other high-calibre
office tenants having requirements between 50,000 and 100,000 square feet, which
should assist us in completing the lease-up of the new component with an optimal
tenant-mix. We don't plan to lease the space in the restored component, which
includes the most valuable retail space in the project, until the lease-up of
the new office component is closer to completion." 


Sweeny Sterling Finlayson & Co Architects is the architect of the project, and
Eastern Construction is the construction manager. Allied and Eastern are well
advanced in tendering the construction work for Phase I and expect to have
approximately 95% of the construction costs fixed within a short time. Allied
has also received financing proposals from several Canadian financial
institutions to provide interim construction financing for Phase I on favourable
terms.


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.


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Allied Properties REIT
Michael R. Emory
President and Chief Executive Officer
(416) 977-9002
memory@alliedreit.com

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