Allied Properties Real Estate Investment Trust Announces Continued Expansion in Calgary

Allied Properties REIT (TSX:AP.UN) announced today that it has entered into an
agreement to purchase LocalMotive Crossing, 1240 - 20th Avenue SW, in Calgary
for $20 million. "In addition to being immediately accretive on an unlevered
basis, this acquisition will continue the consolidation of our ownership in the
urban core of Calgary," said Michael Emory, President & CEO. "It'll also enable
us to increase our growing pool of unlevered properties." 


Located in Inglewood, in close proximity to Allied's Woodstone Building,
LocalMotive Crossing is a Class I property comprised of 48,380 square feet of
GLA (including 4,534 square feet of storage) and 75 surface parking spaces. It
is 88% leased to tenants consistent in character and quality with our tenant
base. Built in 1905 for Standard Soap Co., the property was extensively restored
and expanded for office use in 2007. It is on the Inventory of Evaluated
Historic Resources maintained by the City of Calgary.


Inglewood was established in 1875, not long after Fort Calgary was built. Known
initially as Brewery Flats, the neighbourhood officially received the name of
Inglewood in 1911 and has since evolved into a destination shopping and creative
district. Inglewood has Class I office inventory of approximately 350,000 square
feet.


The acquisition is expected to close in early August of 2013, subject to
customary conditions. The purchase price for the property represents a
capitalization rate of approximately 6.5% applied to the current annual net
operating income ("NOI"). The property will be free and clear of mortgage
financing for closing. Allied does not intend to place mortgage financing on the
property in the near term.


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Allied Properties Real Estate Investment Trust
Michael R. Emory
President and Chief Executive Officer
(416) 977-0643
memory@alliedreit.com

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