It is designated by the City of Vancouver as a Class A Heritage Property. It is a landmark heritage property with 81,590 square feet of GLA and is fully leased to tenants consistent in character and quality with Allied’s tenant base. The Sun Tower (100 West Pender Street) is located in Crosstown (between Yaletown and Gastown) at the intersection of West Pender and Beatty Streets, in relatively close proximity to Allied’s properties in Yaletown. The building was renamed when the Vancouver Sun bought it in 1937 and is still known as The Sun Tower. The building was extensively restored, renovated and re-leased in the past 24 months. On completion in 1912, it was the tallest building in the British Empire, known as The World Building, and served as the home of The Vancouver World newspaper.
On closing, all but the Calgary property will be free and clear of mortgage financing. Allied will place first mortgage financing on the Vancouver and Edmonton properties as it deems advisable. The Calgary property will be subject to a first mortgage in the approximate principal amount of $7 million, having a term expiring in February 29, 2012, bearing interest at an effective rate of 4.25% per year. The acquisitions are expected to close in July and August of 2011, subject to customary conditions. The purchase price for the acquisitions represents a capitalization rate of approximately 6.5% applied to the current annual NOI.
FFO and AFFO are not financial measures defined by International Financial Reporting Standards (“IFRS”). Please see Allied’s MD&A for a description of these measures and their reconciliation to net income and comprehensive income under IFRS, as presented in Allied’s consolidated financial statements for the quarter ended March 31, 2011. These statements, together with accompanying notes and MD&A, have been filed with SEDAR, www.sedar.com, and are also available on Allied’s web-site, www.alliedpropertiesreit.com.
This press release may contain forward-looking statements with respect to Allied, its operations, strategy, financial performance and condition. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release, and Allied has no obligation to update such statements. 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. Allied’s actual results and performance discussed herein could differ materially from those expressed or implied by such statements. 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 the Allied’s Annual Information Form which is available at www.sedar.com. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed. The cautionary statements qualify all forward-looking statements attributable to Allied and persons acting on its behalf.
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. “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.
NOI is not a measure recognized under IFRS and does not have any standardized meaning prescribed by IFRS. 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. 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.
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