TORONTO, ONTARIO -- (Marketwired) -- 11/11/14 -- Allied Properties REIT (TSX: AP.UN) announced today that it has entered into an agreement to purchase 485 King Street West in Toronto for $8 million. The purchase is expected to close on November 14, subject to customary conditions.
THE PROPERTY
Located on the south side of King West at the foot of Brant Street, 485 King West is comprised of a building with approximately 13,200 square feet of GLA and 3,185 square feet of surplus land. The site is rectangular in shape with 7,545 square feet of area and 44 feet of frontage on King West. The building was built in 1896 as a textile warehouse and has been used as such since that time.
The property is between 469 King Street West, a Class I building Allied has owned since its IPO, and Allied's intensification project at 489, 495 and 499 King Street West (the "Project"). Allied recently received municipal approval for 300,000 square feet of GLA in connection with the Project. With 485 King West, Allied expects to improve the Project by (i) integrating the two properties to the east, (ii) increasing the approved GLA, (iii) extending the retail frontage and (iv) rationalizing the vehicular access off King West.
The property will be free and clear of mortgage financing on closing. Allied plans to incorporate the property into the Project and will carry it as a Property Under Development for accounting purposes. Allied does not intend to place mortgage financing on the property prior to commencement of construction, which will be entirely dependent on pre-leasing that has not yet commenced.
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.
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 & Chief Executive Officer
416.977.9002
memory@alliedreit.com
