TORONTO, June 18 /CNW/ - Allied Properties REIT (TSX:AP.UN) announced
today that it has entered into an agreement to purchase 45-55 Colborne Street,
a Class I office property in the St. Lawrence Market area of Downtown Toronto.
The acquisition is expected to close on or about July 3, 2007, subject to
"This is a strategic addition to the St. Lawrence Market component of our
Toronto portfolio," said Michael Emory, President and CEO. "The property is
adjacent to 50 Wellington Street East, which we acquired in 2004. With it,
we'll have nearly 200,000 square feet in the St. Lawrence Market area and over
half a million square feet in Downtown East."
The property is located on the south side of Colborne Street, just west
of Church Street. Designed by E.J. Lennox and built in 1888, it is comprised
of 43,408 square feet of GLA and is designated as being historically
significant. The property is 91.3% leased to tenants consistent in character
and quality with the REIT's tenant base.
The purchase price for the property is $10 million, which represents a
capitalization rate of 7.8%. On closing, the property will be subject to a
first mortgage in the approximate principal amount of $6.5 million, having a
term of approximately eight years and bearing interest at approximately
5.6% per year.
This press release may contain forward-looking statements with respect to
the REIT, 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 the REIT 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 transaction contemplated herein is 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 the Annual Information Form of the REIT which is available
at www.sedar.com. The cautionary statements qualify all forward-looking
statements attributable to the REIT and persons acting on their behalf. Unless
otherwise stated, all forward-looking statements speak only as of the date of
this press release and the REIT has no obligation to update such statements.
"Capitalization rate" is not a measure recognized under Canadian
generally accepted accounting principles ("GAAP") and does not have
standardized meanings prescribed by GAAP. Capitalization rate is presented in
this press release because management of the REIT believes that this non-GAAP
measure is relevant in interpreting the purchase price of the property being
acquired. Capitalization rate, as computed by the REIT, may differ from
similar computations as reported by other similar organizations and,
accordingly, may not be comparable to capitalization rate reported by such
Allied Properties REIT is a leading owner and manager of Class I office
properties in Canada, with portfolio assets in the urban areas of Montreal,
Quebec City, Toronto and Winnipeg. The objectives of the REIT 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:
For further information: Michael R. Emory, President and Chief Executive
Officer, (416) 977-9002, firstname.lastname@example.org