Allied Properties Real Estate Investment Trust Announces Continued Expansion in Calgary
14 Septembre 2012 - 1:30PM
Marketwired
Allied Properties REIT (TSX:AP.UN) announced today that it has
entered into agreements to purchase the following properties for
$27.3 million:
Address Total Office Retail Parking
GLA GLA GLA Spaces
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Demcor Building, Calgary 39,440 39,440 0 43
Chamber of Commerce Building, Calgary 33,874 33,874 0 0
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Total 73,314 73,314 0 43
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"These will be solid additions to our Calgary portfolio, with
each property augmenting an existing concentration within the
inner-city," said Michael Emory, President & CEO. "Once the
acquisitions are closed, our Calgary portfolio will be comprised of
14 urban office properties with 607,344 square feet of rentable
area."
Demcor Building
Located on the southwest corner of the intersection of 10th
Avenue SE and Macleod Trail SE, the Demcor Building is comprised of
39,440 square feet of GLA, all of which is leased to tenants
consistent in character and quality with our tenant base. Built in
1906 for warehouse purposes, the building was redeveloped for
office use in the early 1990s. It is on the Inventory of Evaluated
Historic Resources maintained by the City of Calgary.
Chamber of Commerce Building
The Chamber of Commerce Building is located on the northwest
corner of 6th Avenue SW and Centre Street SW, directly across from
The Bow and in close proximity to two of Allied's properties, the
Lougheed Building and the Telephone Building. It is comprised of
33,874 square feet of GLA, all of which is leased to a high quality
tenant for a term of 10 years commencing on April 1, 2013. Built in
1912, the building was acquired and renovated by the Chamber of
Commerce in 1978. It is designated by the Province of Alberta as a
historic resource under the Historic Resource Act.
Closing and Financing of Acquisitions
The acquisitions are expected to close in October and November
of 2012, subject to customary conditions. The purchase price for
the two properties represents a capitalization rate of 7% applied
to the annual NOI. On closing, the Chamber of Commerce Building
will be free and clear of mortgage financing and the Demcor
Building will be subject to a first mortgage in the approximate
principal amount of $7 million, having a term of 10 years, bearing
interest at an annual rate of approximately 4.25% and payable in
blended installments of principal and interest based on a 25-year
amortization. Allied intends to place first mortgage financing on
the Chamber of Commerce Building early in 2013. On closing, Allied
will continue to have a very conservative debt ratio and
significant internal liquidity and acquisition capacity.
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)
977-0643memory@alliedpropertiesreit.com
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