Allied Properties Real Estate Investment Trust Announces Agreement to Acquire 50% Interest in Class I Redevelopment Project in K
10 November 2010 - 9:30PM
Marketwired Canada
Allied Properties REIT (TSX:AP.UN) announced today that it has entered into an
agreement with Perimeter Development Corporation to purchase a 50% undivided
interest in The Breithaupt Block, 20-24 & 51 Breithaupt Street, Kitchener, for
$4 million.
Located in the Warehouse District of Kitchener and in close proximity to
Allied's property at 72 Victoria Street, The Breithaupt Block is comprised of
(i) six former industrial buildings with approximately 176,000 square feet of
GLA and (ii) approximately two acres of surplus land with long-term development
potential. The former industrial buildings will be redeveloped as a Class I
office complex, with completion scheduled for mid-2013.
"This is a great opportunity for us to augment our position in the Warehouse
District of Kitchener and to develop a working relationship with an accomplished
developer in the area," said Michael Emory, President & CEO. "Not only do we
expect to create meaningful value in the Class I office complex, we see
significant long-term value creation potential in the surplus land."
Perimeter will oversee the redevelopment and manage the property. Perimeter
specializes in adaptive re-use, redevelopment and mixed-use projects in growth
markets across the GTA and Southwestern Ontario. "The Breithaupt Block provides
a unique opportunity to satisfy strong tenant demand for strategically located,
Class I office space with easy access to public transportation, restaurant and
retail amenities and good residential stock," said David Gibson, Founder & CEO
of Perimeter.
The acquisition is expected to close on December 1, 2010, subject to customary
conditions. Allied will carry the investment as a Property Under Development
until the redevelopment is complete and will assist in securing development
financing from third-party sources on acceptable terms.
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 the Annual Information Form of the REIT 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.
Allied Properties REIT is a leading owner, manager and developer of urban office
environments that enrich experience and enhance profitability for business
tenants operating from Toronto, Montreal, Winnipeg, Quebec City, Kitchener and
Calgary. Its objectives are to provide stable and growing cash distributions to
unitholders and to maximize unitholder value through effective management and
accretive portfolio growth.
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