Allied Properties Real Estate Investment Trust Announces Acquisitions

Allied Properties REIT announced that it has entered into agreements to purchase the following properties for $9 million:

Address Total
GLA
Office
GLA
Retail
GLA
Parking
Spaces
605 St-Joseph Street East, Quebec 31,185 22,365 8,820 0
617 - 11th AVE SW, Calgary 9,020 2,950 6,070 14
  40,205 25,315 14,890 14

"In addition to being immediately accretive on an unlevered basis, each property is adjacent to one or more of our existing properties," said Michael Emory, President & CEO. "The acquisitions will also enable us to increase our growing pool of unlevered properties."

The Quebec City Property

Located on the east side of Chapelle Street and extending from the corner with St. Joseph to the corner with Charest, this property is comprised of 31,185 square feet of GLA, all of which is leased to tenants consistent in character and quality with Allied's tenant base. It is adjacent to Allied's property at 633 St. Joseph and just across the street from its property at 622 St. Joseph. Built in 1875, the building was redeveloped for its current use in early part of the last decade.

The Calgary Property

Located on the south side of 11th Avenue S.W., this property is comprised of 9,020 square feet of GLA, all of which is leased to tenants consistent in character and quality with Allied's tenant base, and 14 surface parking spaces. It is between Allied's properties at 613 and 625 11th Avenue S.W. and one property over from its property at 603-603 11th Avenue S.W., affording 376 feet of uninterrupted frontage on the north side of an important block in Calgary's Warehouse District. Built in the 1970s, the building was renovated and upgraded in 2010.

Closing and Financing

The acquisitions are expected to close in June and August of 2013, subject to customary conditions. The purchase price for the properties represents a capitalization rate of 7.9% 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.

on May 22, 2013