Allied Properties Real Estate Investment Trust Announces Continued Expansion in Western Canada
12 February 2013 - 10:43AM
Marketwired
Allied Properties REIT (TSX:AP.UN) announced today that it has
entered into agreements to purchase the following properties in
Western Canada for $21.3 million:
Total Office Retail Parking
Address GLA GLA GLA Spaces
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613 - 11th Avenue S.W., Calgary 3,163 0 3,163 0
Atrium on Eleventh, 625 - 11th Avenue S.W.,
Calgary 35,521 27,663 7,858 52
The Milne Building, 754 Fort Street, Victoria 22,548 13,339 9,209 0
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61,232 41,002 20,230 52
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"In addition to being immediately accretive on an unlevered
basis, these acquisitions will continue the consolidation of our
ownership in the urban core of Calgary and Victoria," said Michael
Emory, President & CEO. "They'll also enable us to increase our
growing pool of unlevered properties."
The Calgary Properties
Located on the south side of 11th Avenue S.W., immediately west
of Allied's property at 603-605, 613 is comprised of 3,163 square
feet of GLA, all of which is leased to a single tenant consistent
in character and quality with Allied's tenant base. Built in 1971
for light industrial use, the building was redeveloped for its
current use in 1995.
Located on the south side of 11th Avenue S.W., one property west
of 613, Atrium on Eleventh is comprised of 35,521 square feet of
GLA, all of which is leased to tenants consistent in character and
quality with Allied's tenant base, and 52 parking spaces in a
two-storey parkade to the rear of the property. Built in 1980, the
building was renovated in 2010.
The properties are relatively new, low-rise structures that have
been well leased. When combined with its current property at
603-605, they'll afford Allied a strong position on the north side
of an important block on the Beltline. With the properties,
Allied's Calgary portfolio will increase to 16 properties with a
total of 567,230 square feet of GLA.
The Victoria Property
Located on the north side of Fort Street, between Douglas and
Blanchard Streets and adjacent to a three-storey parkade, The Milne
Building is comprised of 22,548 square feet of GLA, all of which is
leased to tenants consistent in character and quality with Allied's
tenant base. Built in 1895 with retail at grade and residential
units above the building was restored in 1992, 2000 and 2010. With
the property, Allied's Victoria portfolio will increase to three
properties with a total of 74,063 square feet of GLA.
Closing and Financing
The acquisitions are expected to close in February and March of
2013, subject to customary conditions. The purchase price for the
properties represents an capitalization rate of approximately 7%
applied to the current annual net operating income ("NOI"). The
properties will be free and clear of mortgage financing for
closing. Allied does not intend to place mortgage financing on the
properties 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.
Contacts: Allied Properties REIT Michael R. Emory President and
Chief Executive Officer (416) 977-0643memory@alliedreit.com
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