Allied Properties REIT (TSX:AP.UN) announced today that it has entered into
agreements to purchase the following properties for $46.7 million:




                                    Total   Office   Retail                
Address                               GLA      GLA      GLA  Parking Spaces
---------------------------------------------------------------------------
Woodstone Building, Calgary        31,023   31,023                       20
535 Yates Street, Victoria         19,030   12,718    6,312               0
5445 de Gaspe Avenue, Montreal    502,693  502,693                      150
---------------------------------------------------------------------------
Total                             552,746  546,434    6,312             170
---------------------------------------------------------------------------



"This is a good start to our 2012 program, one that builds well on last year's
efforts," said Michael Emory, President & CEO. "The Woodstone Building opens up
a new sub-market for us in Calgary, whereas 535 Yates Street adds to our
foothold in Victoria. 5445 de Gaspe Avenue in Montreal is a great compliment to
5455 de Gaspe Avenue, a large-scale upgrade property we acquired last year." 


Calgary Acquisition

Located in Inglewood, the Woodstone Building (1207 & 1215 - 13th Street S.E.) is
a Class I property comprised of 31,023 square feet of GLA and 20 surface parking
spaces. It is 100% leased to tenants consistent in character and quality with
Allied's tenant base. Built in 1911 as a wood mill, the property was extensively
restored and renovated for office use in 2009. 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, it officially received the name of Inglewood in 1911 and has
since evolved into a destination shopping and creative district. It has Class I
office inventory of approximately 350,000 square feet.


Victoria Acquisition

Located on Yates Street, between Wharf and Government Streets, 535 Yates Street
is a restored heritage property comprised of 19,030 square feet of GLA. It is
92% leased to tenants consistent in character and quality with our tenant base.
Built in the early 1900s, the property was extensively restored and renovated in
the 1970s and again in 2009. It is a designated heritage property by the City of
Victoria.


Montreal Acquisition

Allied acquired 5455 de Gaspe Avenue in June of last year because of its
strategic location in Montreal's Plateau region and its significant, near-term
upgrade potential. 5445 de Gaspe is the adjacent property to the south. It is a
Class I property comprised of 502,693 square feet of GLA and 150 underground
parking spaces. It is currently 97% leased to a large number of smaller tenants
at low rents. While carrying 5455 de Gaspe as a rental property, Allied plans to
upgrade the building and the tenant-base with a view to boosting the annual net
operating income ("NOI") materially over a five-year period.


Closing and Financing of Acquisitions

The acquisitions are expected to close in late March and early April of 2012,
subject to customary conditions. The purchase price for the three properties
represents a capitalization rate of 7.5% applied to the annual NOI. On closing,
the properties will be free and clear of mortgage financing. Allied will place
first mortgage financing on the properties as soon after closing as possible
with a view to locking-in the currently favourable cost of debt. On closing of
the acquisitions and anticipated mortgage financings, 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.
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