Allied Properties REIT (TSX:AP.UN) announced today that it has entered into
agreements to purchase the following properties in Western Canada for $21.3
million: 




                                               Total  Office  Retail Parking
Address                                          GLA     GLA     GLA  Spaces
----------------------------------------------------------------------------
613 - 11th Avenue S.W., Calgary                3,163       0   3,163       0
Atrium on Eleventh, 625 - 11th Avenue S.W.,                                 
 Calgary                                      35,521  27,663   7,858      52
The Milne Building, 754 Fort Street, Victoria 22,548  13,339   9,209       0
----------------------------------------------------------------------------
                                              61,232  41,002  20,230      52
----------------------------------------------------------------------------



"In addition to being immediately accretive on an unlevered basis, these
acquisitions will continue the consolidation of our ownership in the urban core
of Calgary and Victoria," said Michael Emory, President & CEO. "They'll also
enable us to increase our growing pool of unlevered properties." 


The Calgary Properties

Located on the south side of 11th Avenue S.W., immediately west of Allied's
property at 603-605, 613 is comprised of 3,163 square feet of GLA, all of which
is leased to a single tenant consistent in character and quality with Allied's
tenant base. Built in 1971 for light industrial use, the building was
redeveloped for its current use in 1995. 


Located on the south side of 11th Avenue S.W., one property west of 613, Atrium
on Eleventh is comprised of 35,521 square feet of GLA, all of which is leased to
tenants consistent in character and quality with Allied's tenant base, and 52
parking spaces in a two-storey parkade to the rear of the property. Built in
1980, the building was renovated in 2010.


The properties are relatively new, low-rise structures that have been well
leased. When combined with its current property at 603-605, they'll afford
Allied a strong position on the north side of an important block on the
Beltline. With the properties, Allied's Calgary portfolio will increase to 16
properties with a total of 567,230 square feet of GLA. 


The Victoria Property

Located on the north side of Fort Street, between Douglas and Blanchard Streets
and adjacent to a three-storey parkade, The Milne Building is comprised of
22,548 square feet of GLA, all of which is leased to tenants consistent in
character and quality with Allied's tenant base. Built in 1895 with retail at
grade and residential units above the building was restored in 1992, 2000 and
2010. With the property, Allied's Victoria portfolio will increase to three
properties with a total of 74,063 square feet of GLA. 


Closing and Financing

The acquisitions are expected to close in February and March of 2013, subject to
customary conditions. The purchase price for the properties represents an
capitalization rate of approximately 7% applied to the current annual net
operating income ("NOI"). The properties will be free and clear of mortgage
financing for closing. Allied does not intend to place mortgage financing on the
properties in the near term.


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Allied Properties REIT
Michael R. Emory
President and Chief Executive Officer
(416) 977-0643
memory@alliedreit.com
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