Allied Properties Real Estate Investment Trust Announces Strategic Acquisitions in Downtown Toronto and Provides Update on QRC W

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.
Allied Properties Real E... (TSX:AP.UN)
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