TORONTO, Feb. 2 /CNW/ - Allied Properties REIT (TSX:AP.UN) announced
today that it has entered into an agreement to purchase 4436-4450
Saint-Laurent Boulevard, a Class I office property located in downtown
Montreal, and 5,500 square feet of adjacent land that forms the southwest
corner of Saint-Laurent and Boulevard Mount-Royal. The purchase price is
$11.2 million, and the portion allocated to the Class I office property
represents a capitalization rate of 8.8%.
The Class I office property is comprised of 82,533 square feet of GLA, 24
underground parking spaces and 15 surface parking spaces. It is fully leased
to 19 tenants consistent in character and quality with the REIT's existing
tenant base.
"This acquisition will bring our Montreal portfolio to half a million
square feet of GLA, nearly 20% of the total GLA in our portfolio" said Michael
Emory, President and CEO. "The adjacent land is strategically located and
represents an opportunity to create additional value for our unitholders in
the future."
The acquisition is expected to close on or about March 31, 2006, subject
to customary conditions. The property will be subject to a first mortgage in
the approximate principal amount of $5.7 million and bearing interest at the
rate of 5.663% for a term expiring in June of 2009.
Allied Properties REIT owns a portfolio of predominantly Class I office
properties in downtown Toronto, downtown Montreal and downtown Winnipeg. The
objectives of the REIT are to provide stable and growing cash distributions to
its unitholders and to maximize unitholder value through the effective
management and accretive growth of its portfolio.
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 parties have 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
organizations.
