Allied Properties Real Estate Investment Trust Commences Full
Construction of Phase I of QRC West
First Phase of Large-Scale Intensification Project to become Canadian
Head Office of Sapient Corporation
TORONTO, ONTARIO -- (Marketwire) -- 12/12/12 -- Allied Properties
REIT (TSX:AP.UN) today announced that it has initiated the full
construction process for Phase I of QRC West, an intensification
project in Toronto's rapidly transforming downtown area. Extending
along the west side of Peter Street, from Queen Street to Richmond
Street, QRC West is an office-retail development that Allied will
complete in two phases. The first phase ("Phase I") will integrate a
restored brick-and-beam building, 134 Peter Street, with a new,
11-storey office structure having approximately 250,000 square feet
of rentable area that Allied plans to complete to a LEED Gold
Standard. Completion of the first phase is scheduled for early 2015.
The second phase, which is now well advanced in the municipal
approval process, is expected to include a large retail component on
the southwest corner of Queen and Peter Streets.
"In our view, QRC West is the next step in the evolution of
inner-city office space," said Michael Emory, President & CEO of
Allied. "By integrating a distinctive part of Toronto's built legacy
with new, LEED-certified structures, it will provide business tenants
with creative, efficient and environmentally responsible workspace in
one of the most vibrant, mixed-use areas of downtown Toronto."
Allied also announced that it has entered into a lease with Sapient
Corporation for approximately 50,000 square feet of office space
comprising the 8th and 9th floors of Phase I for a term of 10 years
commencing on March 1, 2015. This space will serve as the Canadian
head office of Sapient Corporation upon completion.
"We're pleased with all aspects of this initial lease transaction,"
continued Mr. Emory. "As importantly, we're in discussions with
several other high-calibre office tenants having requirements between
50,000 and 100,000 square feet, which should assist us in completing
the lease-up of the new component with an optimal tenant-mix. We
don't plan to lease the space in the restored component, which
includes the most valuable retail space in the project, until the
lease-up of the new office component is closer to completion."
Sweeny Sterling Finlayson & Co Architects is the architect of the
project, and Eastern Construction is the construction manager. Allied
and Eastern are well advanced in tendering the construction work for
Phase I and expect to have approximately 95% of the construction
costs fixed within a short time. Allied has also received financing
proposals from several Canadian financial institutions to provide
interim construction financing for Phase I on favourable terms.
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.
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.
Allied Properties REIT
Michael R. Emory
President and Chief Executive Officer
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