Allied Properties Real Estate Investment Trust Announces Agreements to Acquire Underground Commercial Parking Spaces Adjacent to Properties in the King & Spadina Area of Downtown Toronto
TORONTO, ONTARIO--(Marketwire - March 11, 2009) - Allied Properties REIT (TSX:AP.UN) announced today that it has entered into agreements to purchase the following properties for approximately $5 million:
(i) an undivided 50% interest in 92 underground commercial parking spaces to be constructed as part of the Victory Lofts condominium project by BLVD Developments at 478 King Street West in Toronto, which is adjacent to three of Allied's properties, 468 King Street West, 500-522 King Street West and the King-Brant underground commercial parking structure; and
(ii) an undivided 75% interest in 71 underground commercial parking spaces to be constructed as part of the SIX50KING condominium project by Freed Developments at 650 King Street West in Toronto, which is adjacent to Allied's 662 King Street West and in close proximity to its 602-606 King Street West.
Each acquisition is conditional upon final condominium registration and is expected to close in 2011. Allied will manage both underground commercial parking structures on behalf of the co-owners, giving it operating control over 163 parking spaces in addition to the 208 parking spaces at its King-Brant underground commercial parking structure and the surface parking spaces adjacent to its numerous properties in the King & Spadina area.
"These will be small but highly strategic acquisitions for us," said Michael Emory, President and CEO. "Not only will they afford us a reasonable yield on our capital, they'll add meaningfully to the competitive advantages of some of our best Class I office properties in the King & Spadina area."