Allied Properties Real Estate Investment Trust announces agreements to acquire Class I office property in Toronto

About this update from Allied Properties Real Estate Investment Trust

[{"type":"text","content":"\n\n\n\n\nTORONTO, Sept. 26 /CNW/ - Allied Properties REIT (TSX:AP.UN) announced\ntoday that it has entered into an agreement to purchase 67 Richmond Street\nWest, a Class I office building located in downtown Toronto, for $9.5 million.\nThe acquisition is expected to close on or about October 11, 2005, subject to\ncustomary conditions.\nThe building is comprised of 50,664 square feet of gross leasable area\n(GLA) and is 87% leased to five tenants. The principal tenant, Omnicom Group,\noccupies 62% of the GLA pursuant to a lease that expires in 2011.\nThe purchase price represents an initial capitalization rate of 7.7%\nafter deducting the operating costs associated with a full-floor vacancy and\nan ongoing capitalization rate of 9.6% upon lease-up of the vacant floor. The\nproperty will be free and clear on closing. The REIT intends to finance the\nacquisition initially with its acquisition credit facility and also intends to\nplace first mortgage financing on the property in the approximate principal\namount of $6.5 million as soon after closing as possible. The REIT expects the\nacquisition to be accretive to Distributable Income per unit from the outset.\nAllied Properties REIT owns a portfolio of predominantly Class I office\nproperties in downtown Toronto, downtown Montreal and downtown Winnipeg. The\nobjectives of the REIT are to provide stable and growing cash distributions to\nits unitholders and to maximize unitholder value through the effective\nmanagement and accretive growth of its portfolio.\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, g...

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