AP.UN Allied Properties Real Estate Investment Trust

Allied Properties REIT (TSX:AP.UN) announced today that it has entered into
agreements to purchase the following properties for $69.2 million:




                                               Total  Office  Retail Parking
Address                                          GLA     GLA     GLA  Spaces
----------------------------------------------------------------------------
85 Rue St. Paul, Montreal                     79,778  79,778       -      25
The Pilkington Building, 402 - 11th Avenue                                  
 S.E., Calgary                                48,223  48,223       -      44
The Biscuit Block, 438 - 11th Avenue S.E.,                                  
 Calgary                                      54,073  54,073       -      39
----------------------------------------------------------------------------
                                             182,074 182,074       -     108
----------------------------------------------------------------------------



"We continue to find high-quality infill properties that fit squarely within our
investment parameters," said Michael Emory, President & CEO. "In addition to
being immediately accretive, each of these properties is close to one or more of
our existing properties. The Calgary properties form nearly half a city block in
the heart of the Warehouse District." 


Allied also announced the establishment of a fourth intensification joint
venture with RioCan REIT through the acquisition of an undivided 50% interest in
491 College Street and 289 Palmerston Avenue in Toronto. "This is our fourth
intensification JV with RioCan," said Mr. Emory. "It will enable both of us to
build on the collaborative relationship that has been developed through the
College & Manning JV, the King & Portland JV and the Downtown West JV, all of
which are progressing well."


The Montreal Property

Located on the northeast corner of Rue St. Paul and Rue St. Sulpice, this
property is comprised of 79,778 square feet of GLA, all of which is leased to
tenants consistent in character and quality with Allied's tenant base. Built in
1861, the building was renovated and upgraded in 2001.


The Pilkington Building, Calgary

Located on northeast corner of 11th Avenue S.E. and 3th Street S.E., this
property is comprised of 48,223 square feet of GLA, all of which is leased to
tenants consistent in character and quality with Allied's tenant base, and 44
surface parking spaces. Built in 1913, the building was renovated and upgraded
in 2012.


The Biscuit Block, Calgary

Located on northwest corner of 11th Avenue S.E. and 4th Street S.E., this
property is comprised of 54,073 square feet of GLA, all of which is leased to
tenants consistent in character and quality with Allied's tenant base, nine
surface parking spaces and 30 underground parking spaces. Built in 1912, the
building was renovated and upgraded in 2013.


Closing and Financing

The acquisitions in Montreal and Calgary are expected to close in February and
March of 2014, subject to customary conditions. The purchase price for the three
properties represents a capitalization rate of approximately 6.8% applied to the
current annual net operating income ("NOI"). The properties will be free and
clear of mortgage financing immediately prior closing. Allied plans to place
mortgage financing on the properties on or soon after closing and will fund the
equity component of the acquisitions with cash-on-hand.


College & Palmerston Joint Venture, Toronto

491 College Street and 289 Palmerston Avenue are comprised of 15,651 square feet
of land on the south side of College and the east side of Palmerston. The
College portion has 90 feet of frontage and includes a heritage building with
just over 10,000 square feet of GLA. The Palmerston portion is separated from
the College portion by a public laneway and is currently used for ancillary
parking. The property was acquired by Allied and RioCan on a 50/50 basis in late
December of 2013 for $7.7 million without the use of mortgage financing. While
currently operating the property for rental purposes, the joint venture intends
to intensify it over time by creating a mixed-use office, retail and residential
complex, similar in concept to the one contemplated by the College & Manning JV.


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.


"Capitalization rate" is not a measure recognized under International Financial
Reporting Standards ("IFRS") and does not have any standardized meaning
prescribed by IFRS. Capitalization rate is presented in this press release
because management of Allied believes that this non-IFRS measure is relevant in
interpreting the purchase price of the properties being acquired. Capitalization
rate, as computed by Allied, may differ from similar computations as reported by
other similar organizations and, accordingly, may not be comparable to
capitalization rate reported by such organizations.  


NOI is not a measure recognized under IFRS and does not have any standardized
meaning prescribed by IFRS. NOI is presented in this press release because
management of Allied believes that this non-IFRS measure is relevant in
interpreting the purchase price of the property being acquired. NOI, as computed
by Allied, may differ from similar computations as reported by other similar
organizations and, accordingly, may not be comparable to NOI reported by such
organizations. 


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Allied Properties Real Estate Investment
Michael R. Emory
President and Chief Executive Officer
(416) 977-0643
memory@alliedreit.com
www.alliedreit.com

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