TORONTO, Nov. 1 /CNW/ - Allied Properties REIT (TSX:AP.UN) announced today that it has closed the acquisition from Camwood Properties Ltd. of a 285,434 square foot, Class I office portfolio in downtown Toronto. The acquisition significantly bolsters the REIT's position as the leading provider of Class I office space in Toronto, increasing the size of its portfolio in King West Central by 12%, in the Entertainment District by 33% and in Downtown East by 22%. The REIT announced earlier today that it had closed the offering to the public of 1.3 million units from treasury at a price of $15.50 per unit for gross proceeds of $20.15 million. The REIT used the net proceeds of the offering to fund a portion of the purchase price for the portfolio. The purchase price was $56 million. Nine of the 12 properties in the portfolio were free and clear on closing. The remaining three properties were subject to first mortgages in the aggregate principal amount of $12.13 million, which were assumed by the REIT in partial payment of the purchase price. In addition to the proceeds of the offering, the REIT used the proceeds of two recent mortgage financings to fund the acquisition, one on 602-606 King Street West, Toronto, in the principal amount of $8 million for a term of 10 years at an annual interest rate of 5.16% and the other on 67 Richmond Street West, Toronto, in the principal amount of $6.65 million for a term of 10 years at an annual interest rate of 5.19%. The REIT funded the balance of the acquisition through its acquisition lines of credit. 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.