Allied Properties Real Estate Investment Trust announces acquisition of Class I office property in Downtown Toronto

About this update from Allied Properties Real Estate Investment Trust

[{"type":"text","content":"\n\n\n\nTORONTO, June 18 /CNW/ - Allied Properties REIT (TSX:AP.UN) announced\ntoday that it has entered into an agreement to purchase 45-55 Colborne Street,\na Class I office property in the St. Lawrence Market area of Downtown Toronto.\nThe acquisition is expected to close on or about July 3, 2007, subject to\ncustomary conditions.\n\n\n"This is a strategic addition to the St. Lawrence Market component of our\nToronto portfolio," said Michael Emory, President and CEO. "The property is\nadjacent to 50 Wellington Street East, which we acquired in 2004. With it,\nwe'll have nearly 200,000 square feet in the St. Lawrence Market area and over\nhalf a million square feet in Downtown East."\n\n\nThe property is located on the south side of Colborne Street, just west\nof Church Street. Designed by E.J. Lennox and built in 1888, it is comprised\nof 43,408 square feet of GLA and is designated as being historically\nsignificant. The property is 91.3% leased to tenants consistent in character\nand quality with the REIT's tenant base.\n\n\nThe purchase price for the property is $10 million, which represents a\ncapitalization rate of 7.8%. On closing, the property will be subject to a\nfirst mortgage in the approximate principal amount of $6.5 million, having a\nterm of approximately eight years and bearing interest at approximately\n5.6% per year.\n\n\nCautionary Statements\n\n\nThis press release may contain forward-looking statements with respect to\nthe REIT, its operations, strategy, financial performance and condition. These\nstatements generally can be identified by use of forward looking words such as\n"may", "will", "expect", "estimate", "anticipate", intends", "believe" or\n"continue" or the negative thereof or similar variations. The actual results\nand performance of the REIT discussed herein could differ materially from\nthose expressed or implied by such statements. Such statements are qualified\nin their entirety by the inherent risks and uncertainties surrounding future\nexpectations, including that the transaction contemplated herein is completed.\nImportant factors that could cause actual results to differ materially from\nexpectations include, among other things, general economic and market factors,\ncompetition, changes in gove...

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