Allied to Acquire Major Class I Complex in Montréal

TORONTO, Dec. 09, 2019 (GLOBE NEWSWIRE) -- Allied Properties Real Estate Investment Trust (TSX:AP.UN) announced today that it has entered into an agreement to acquire a large and important Class I complex in Montréal, 747 Square-Victoria Street (“747 Square-Victoria”), for $276 million. The agreement is subject to regulatory approval but not subject to due-diligence, which Allied has completed to its satisfaction.

747 Square-Victoria Street, Montréal

747 Square-Victoria is a Class I complex located in the heart of the International Quarter, a heritage- and amenity-rich area that connects the Downtown Core with Old Montréal. It will enhance Allied’s ability to serve knowledge-based organizations in urban Montréal as it transforms to a primary North American office market for TAMI (tech, advertising, media and information) users.

Comprising a large part of the city block bounded by Saint-Antoine on the north, Saint-Pierre on the east, Saint-Jacques on the south and Square-Victoria on the west, 747 Square-Victoria was created by integrating heritage structure along Saint-Antoine and Saint-Jacque with new structure along a historic laneway (Ruelle des Fortifications) that extends the length of the block from Saint-Pierre to Square-Victoria. Now an integral part of the complex, the laneway rises to a glass canopy along the roofline of the integrated structures forming an atrium that facilitates access to the extensive retail and office uses within the complex. Completed in the early 1990s, the complex is comprised of 519,574 square feet of office GLA, 43,015 square feet of retail GLA and 858 underground parking spaces. The possibility exists to create additional office and retail GLA by transforming portions of the common areas and adding approximately 60,000 square feet of office GLA. The complex is 90.7% leased, and has a weighted-average lease term in excess of six years.

747 Square-Victoria is located in close proximity to (and is essentially connected with) Allied’s 700 de la Gauchetière Street West (“700 DLG”) and 425 Viger Avenue West (“425 Viger). The proximity and connectivity will enhance Allied’s ability to coordinate and enrich the user experience at all three buildings over time.

On closing, 747 Square-Victoria will be free and clear of mortgage financing. Allied has funded the acquisition cost on an essentially leverage-neutral basis with its recently completed equity offering. This will be accretive to Allied’s FFO and AFFO per unit at the outset and will become more accretive with each passing year.