Allied Properties Real Estate Investment Trust Announces Continued Expansion in Vancouver and Disposition of Non-Core Asset
22 Octobre 2012 - 11:13PM
Marketwired
Allied Properties REIT (TSX:AP.UN) announced today that it has
entered into agreements to purchase the following properties for
$42 million:
Total Office Retail
Address GLA GLA GLA Parking Spaces
----------------------------------------------------------------------------
1040 Hamilton Street, Vancouver 44,667 37,693 6,974 26
1286 Homer Street, Vancouver 24,723 15,746 8,977 0
----------------------------------------------------------------------------
Total 69,390 53,439 15,951 26
----------------------------------------------------------------------------
Allied also announced that it has entered into an agreement to
sell a non-core asset in Winnipeg for $725,000.
"These will be solid additions to our Vancouver portfolio, with
each property augmenting an existing holding in Yaletown," said
Michael Emory, President & CEO. "Once the acquisitions are
closed, our Vancouver portfolio will be comprised of five urban
office properties with nearly 300,000 square feet of rentable
area."
1040 Hamilton Street, Vancouver
Located on the south side of Hamilton and extending through to
and having frontage on Mainland Street, this property is comprised
of 44,667 square feet of GLA, all of which is leased to tenants
consistent in character and quality with Allied's tenant base. The
property is located in close proximity to Allied's property at
948-950 Homer. Built in 1920 as for a paper company, the building
was redeveloped for office and retail use in 1988. Management
believes that municipal approval can be obtained to add an
additional 20,000 square feet of GLA to the building and that such
an addition is structurally feasible.
1286 Homer Street, Vancouver
Located on the south side of the Homer and extending through to
and having frontage on Hamilton, this property is comprised of
24,723 square feet of GLA, all of which is leased to tenants
consistent in character and quality with Allied's tenant base. The
property is located in close proximity to Allied's property at 840
Cambie. Built in 1910 for warehouse purposes, the building was
redeveloped for office and retail use in 1989. Management believes
that municipal approval can be obtained to add an additional 10,000
square feet of GLA to the building and that such an addition is
structurally feasible.
Closing and Financing of Acquisitions
The purchase price of $42 million represents a capitalization
rate of 6.2% on the current NOI. The acquisitions are scheduled to
close in November of this year, subject to normal conditions. 1040
Hamilton will be subject on closing to a first mortgage in the
approximate principal amount of $11.9 million for a remaining term
expiring in December of 2014, bearing interest at approximately
5.4% per year and payable in blended instalments of principal and
interest based on a 25-year amortization. 1286 Homer will be free
and clear on closing. Allied will place additional mortgage
financing on the properties following closing. Allied continues to
have a very conservative debt ratio and significant internal
liquidity and acquisition capacity.
Southeast Corner, Hargrave Street and Notre Dame Avenue,
Winnipeg
An incidental part of a portfolio acquisition completed in late
2006, this is an ancillary parking lot with 76 surface parking
spaces that is no longer necessary to meet the parking requirements
of the tenants of Allied's core Class I properties in the Exchange
District. After negotiation, Allied accepted an unsolicited offer,
seeing it as a good opportunity to dispose of a non-core asset. The
sale is scheduled to close before the end of the year, subject to
normal conditions.
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@alliedreit.com
Allied Properties Real E... (TSX:AP.UN)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Allied Properties Real E... (TSX:AP.UN)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024