Allied Announces Class I Acquisitions in Urban Vancouver
TORONTO, Nov. 07, 2018 (GLOBE NEWSWIRE) — Allied Properties Real Estate Investment Trust (“Allied”) (TSX:AP.UN) announced today that it has acquired 1220 Homer Street and entered into an agreement to acquire 151 West Hastings Street for total consideration of $57.5 million. “These are strategic acquisitions for Allied, in that we’re increasing our penetration in urban Vancouver just as it’s transitioning to a primary Canadian office market,” said Michael Emory, President and CEO. “1220 Homer augments our concentration of Class I properties in Yaletown. 151 West Hastings will be our first acquisition in Gastown, the Vancouver neighbourhood most like King & Spadina in Toronto, both in its proximity to the Downtown Core and its concentrated heritage scale and texture.”
Located on the east side of Homer, one building in from Davie Street, 1220 Homer is a tier-one Class I building. It is comprised of 21,708 square feet of GLA and is fully leased to Perkins + Will Canada Architects for a term expiring in March of 2023. The workspace was designed by the current user and achieved LEED Existing Buildings: Operations and Maintenance 2009 Platinum Certification in September of 2014.
Located on the north side of West Hastings, one building in from Cambie Street, 151 West Hastings is a tier-one Class I building. While the façade of the building has been impeccably preserved, the interior of the building was completely rebuilt to current workspace standards. It is comprised of 38,511 square feet of GLA and is fully leased to Spaces for a term expiring in July of 2033 with four rent escalations over the term.
1220 Homer was unencumbered on closing. Allied financed the acquisition from its unsecured line of credit. On closing, which is scheduled for November 30, 2018, 151 West Hastings will be subject to a first mortgage in the principal amount of $18.3 million, having a term expiring in July of 2028, bearing interest at 4.035% per year and payable in blended instalments of principal and interest based on a 28 year amortization. Allied will finance the equity component of the acquisition from its unsecured line of credit. Allied expects the acquisition of the properties to be neutral to its AFFO per unit.
Allied is a leading owner, manager and developer of (i) distinctive urban workspace in Canada’s major cities and (ii) network-dense urban data centres in Toronto that form Canada’s hub for global connectivity. Allied’s business is providing knowledge-based organizations with distinctive urban environments for creativity and connectivity.
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.
For more information, please contact:
Michael Emory, President & CEO
Cecilia C. Williams, Executive Vice President & CFO