Allied Properties Real Estate Investment Trust announces agreement to acquire Class I office property in Montreal

About this update from Allied Properties Real Estate Investment Trust

[{"type":"text","content":"\n\n\n\n\nTORONTO, June 22 /CNW/ - Allied Properties REIT (TSX:AP.UN) announced\ntoday that it has entered into an agreement to purchase 400 Atlantic Avenue, a\nClass I office building located in midtown Montreal. The acquisition is\nexpected to close on or about July 14, 2006, subject to customary conditions.\n\"This is another good example of our ability to capture value in our\ntarget markets,\" said Michael Emory, President and CEO. \"The anticipated yield\nis attractive, the cost per square foot is low, the building has been very\nwell renovated and retrofitted and the surrounding neighbourhood is undergoing\npositive transformation.\"\nThe property is comprised of 86,034 square feet of GLA and is 93% leased\nto tenants consistent in character and quality with the REIT's tenant base. It\nis located on the northern edge of the Plateau Mount Royal District,\nimmediately to the east of the proposed site for the new University of\nMontreal campus. The purchase price of $5 million represents a capitalization\nrate of 9% and a cost of $58 per square foot of GLA.\nThe property will be free and clear on closing. The REIT intends to\nfinance the acquisitions by utilizing a portion of the proceeds from a pending\nmortgage refinancing and by drawing the balance down on its acquisition line\nof credit.\nThe REIT has obtained a commitment to upward refinance the first mortgage\non 425-439 and 445-455 King Street West, Toronto. The new first mortgage will\nhave a term of 10-years, bear interest at 5.86% per annum and generate upward\nrefinancing proceeds of approximately $7.9 million.\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 ...

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