Allied Properties Real Estate Investment Trust Announces Strategic Acquisitions in Downtown Toronto and Provides Update on QRC W
30 Juin 2011 - 5:00PM
Marketwired
Allied Properties REIT (TSX: AP.UN) announced today that it has
entered into an agreement to purchase two commercial parking
facilities for $6.95 million. Allied also provided an update on its
QRC West intensification project.
Acquisitions
The commercial parking facilities are as follows:
Address Levels Parking Spaces
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388 Richmond Street West, Toronto Three above grade 117
301 Markham Street, Toronto Two below grade 46
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Total 163
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The acquisitions are part of Allied's ongoing effort to provide
superior parking solutions to its tenants. The facility at 388
Richmond Street West is part of District Lofts, a condominium
located on the north side of Richmond Street, one building west of
Allied's QRC West intensification project. It is comprised of three
levels above grade and includes 117 parking spaces. The facility
will enhance Allied's ability to provide extensive and desirable
parking solutions to the tenants of QRC West.
The facility at 301 Markham Street is part of Ideal Lofts, a
condominium located on the east side of Markham Street, in
relatively close proximity to Allied's property at 555 College
Street. It is comprised of two levels below grade and includes 46
parking spaces. The facility will enhance Allied's ability to
provide parking solutions to the tenants of 555 College.
The acquisitions are expected to close on July 29, 2011, subject
to customary conditions. The purchase price for the facilities
represents an initial capitalization rate of approximately 6%. On
closing, Allied will assume an existing first mortgage in the
approximate principal amount of $2.5 million, having a term
expiring in March 31, 2018, bearing interest at 6.04% per year and
payable in blended installments of principal and interest based on
an initial 20-year amortization period.
QRC West
When it initiated the pre-leasing of the first phase of QRC West
in January of 2010, Allied estimated that 12-18 months would be
required to secure a lead-tenant. Despite the encouraging level of
interest demonstrated by prospective office tenants, Allied is not
currently negotiating with a prospective lead-tenant and will
require additional time to achieve the level of pre-leasing
necessary to commence new construction.
Allied remains fully committed to both phases of the QRC West
intensification project. It has decided to proceed with the
renovation and retrofit of the existing structure at 134 Peter
Street. This work has to be completed in any event, and it will put
Allied in a position to complete the new construction within the
shortest possible timeframe once an appropriate level of
pre-leasing is achieved.
Cautionary Statements
This press release may contain forward-looking statements with
respect to Allied, 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 Allied 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 transactions
contemplated herein are 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 Allied's Annual Information Form,
which is available at www.sedar.com. These cautionary statements
qualify all forward-looking statements attributable to Allied and
persons acting on Allied's 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
International Financial Reporting Standards ("IFRS") and does not
have any standardized meaning prescribed by IFRS. Capitalization
rate is presented in this press release because management of
Allied believes that this non-IFRS measure is relevant in
interpreting the purchase price of the properties being acquired.
Capitalization rate, as computed by Allied, may differ from similar
computations as reported by other similar organizations and,
accordingly, may not be comparable to capitalization rate reported
by such organizations.
NOI is not a measure recognized under IFRS and does not have any
standardized meaning prescribed by IFRS. NOI is presented in this
press release because management of Allied believes that this
non-IFRS measure is relevant in interpreting the purchase price of
the property being acquired. NOI, as computed by Allied, may differ
from similar computations as reported by other similar
organizations and, accordingly, may not be comparable to NOI
reported by such organizations.
Allied Properties REIT is a leading owner, manager and developer
of urban office environments that enrich experience and enhance
profitability for business tenants operating in Canada's major
cities. Its objectives are to provide stable and growing cash
distributions to unitholders and to maximize unitholder value
through effective management and accretive portfolio growth.
Contacts: Allied Properties REIT Michael R. Emory President and
Chief Executive Officer (416) 977-0643
memory@alliedpropertiesreit.com
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