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September 14, 2009

Allied Properties REIT announced today that it has entered into an agreement to purchase 151 Front Street West, Toronto. This property is a Class I office, with 325,772 square feet of gross leasable area, 56 surface parking spaces and 750,000 square feet of approved intensification potential.

The acquisition is expected to close in October of this year, subject to customary conditions.

Initially known as the Canadian National Express Building and York Teamway, 151 Front Street West is located on the south side of Front Street, at the intersection with Simcoe Street and one building west of the intersection with University Avenue.

The property includes surplus land on which 750,000 square feet can be developed for specialized and general office use and for ancillary retail use. The land has been rezoned to permit this development. Allied does not intend to pursue this opportunity in the near-term, but believes that it will augment the significant value-creation opportunities present in its Toronto portfolio.

The total consideration of $192 million represents a 10% capitalization rate applied to the in-place annual net operating income from the property.

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