This news release is intended to supplement the Allied Prospectus dated November 12, 2021 to the short-form Baseshelf Prospectus dated June 2, 2021, revised November 11, 2021. Configure “Specified News Release”.
Toronto, March 7, 2022 (GLOBE NEWSWIRE) — Allied Properties Real Estate Investment Trust (“Allied”) (TSX: AP.UN) today signed a contract with the Choice Properties Real Estate Investment Trust (“Choice Properties”). Was announced. ) (TSX: CHP.UN) will acquire the following six urban office properties for $ 794 million.
|property||GLA @ Share||Occupancy||Underground parking stalls||certification||Principal tenant|
|1010 Sherbrooke Street West, Montréal (100% free hold)||328,354||94.9%||276||BOMA Best Silver||McGill University|
|110 Yonge Street, Toronto (managing 50% freehold)||80,384||89.7%||72||BOMA Best Silver||SI system|
|525 University Avenue in Toronto (100% Free Hold)||202,111||99.0%||178||BOMA Best Gold||Hospital for sick children|
|175 Bloor Street East, Toronto (managing 50% freehold)||304,731||80.9%||264||LEED O + M Gold||Klick Inc.|
|1508 West Broadway, Vancouver (100% leasehold)||147,376||95.1%||265||BOMA Best Gold||Nicola Wealth|
|1185 West Georgia Street, Vancouver (100% Free Hold)||165,855||91.2%||157||BOMA Best Gold||Flure Canada|
“This is an extraordinary win-win deal for Choice and Allied,” said Michael Emory, President and CEO of Allied. “This represents an important and compelling strategic improvement of Choice and a significant expansion of Allied’s operational capabilities. Using Allied’s units as a currency for 75% of the purchase price and using the remaining promissory notes. By using it, Choice and Allied each achieve important capital allocation goals. “
Allied will pay a purchase price of $ 594 million by issuing a subsidiary Limited Partnership Class BLP unit (“Class B Unit”) to Choice Properties for $ 50.30 per unit. Class B units are one-on-one interchangeable with Allied units and are subject to certain lockup and suspension clauses, including a 24-month lockup at 25% of Class B units. Or, in some cases, Allied units are released from lockup every three months from the first anniversary of their closure. Each Class B unit comes with one special voting unit (“Special Voting Unit”) that is not Allied. The Allied Declaration of Trust has been amended and amended to regulate the creation and issuance of special voting units. Allied grants Choice Properties a $ 200 million promissory note for a period expiring December 31, 2023, and pays 1% annual interest in 2022 and 2% annual interest in 2023 to pay the purchase price. Pay the balance. Overdue.
The increase in FFOs and AFFOs per unit due to transactions is initially modest and is expected to increase over time as Allied consolidates its properties into its urban office portfolio in Montreal, Toronto and Vancouver. This transaction will improve the Allied total debt ratio and net debt as a multiple of adjusted EBITDA.
The transaction is expected to close by the end of the second quarter of 2022, subject to approval of the Toronto Stock Exchange and competition law. Goldman Sachs Canada, Scotiabank, Air Do & Barris have advised the Allies in connection with this transaction. RBC Capital Markets and the Tories have advised Choice Properties in connection with this deal.
“Our top priority in making this acquisition is to expand our business capabilities in Montreal, Toronto and Vancouver,” said Tom Burns, Executive Vice President and COO of Allied. “In particular, this acquisition will expand our ability to serve the biotechnology, life sciences, education and TAMI sectors, and will become a leading provider of Vancouver’s distinctive urban workspaces. We will further promote our goals. “
Allied will integrate the 1010 Sherbrooke into its Montreal portfolio, expanding its portfolio to 32 properties and achieving a GLA of over 7 million square feet. Allied will consolidate 110 Yonge, 525 University and 175 Bloor East into its Toronto portfolio, expanding its portfolio to 108 properties and GLA will be 5.4 million square feet. Allied will consolidate 1508 West Broadway and 1185 West Georgia into its Vancouver portfolio, expanding its portfolio to 15 properties, bringing GLA to just over 1 million square feet.
Biotechnology and life sciences
Allied announced its intention to serve biotechnology and life science users in August 2021 as part of the acquisition of the office components of Place Gare Viger in Montreal. With 525 University and 175 Bloor East, Allied will be able to serve biotechnology and life sciences users in Toronto, much like it acquired Place Gare Viger in Montreal. Hospitals for sick children make up 60% of 525 universities and Klick make up 25% of 175 Bloor East. In particular, Klick is LifeScience’s world’s largest independent commercialization partner, with a focus on developing, launching and supporting LifeScience brands to maximize market potential. In the future, Allied will operate both properties with the goal of being fully serviced by biotechnology and life sciences users.
Educational users represent a key component of the ongoing demand for Allied unique urban workspaces. George Brown College has occupied 73,542 square feet of space at Allied 230 Richmond Street East in Toronto since 2007. Farley Dickenson University has occupied 37,075 square feet of GLA on Allied 840 Cambie Street in Vancouver since 2007. Area of rentable area in Phase II, QRC West, Toronto (estimated 93,134 sq ft). McGill University occupies 22% of 1010 Sherbrooke West in Montreal. In the future, Allied will operate this property with 1001 Robert Bourassa with the aim of being fully serviced by educational users, TAMI users, and related business accelerators and incubators.
TAMI (Technology, Advertising, Media, Information)
Allied has been servicing TAMI users since its launch in 2003. According to Cushman & Wakefield, Allied completed 29% of all leasing transactions with technology users in the downtown Toronto market between March 1, 2020 and January 31, 2022. During that period, he owned 5% of downtown Toronto’s office inventory. The Montreal and Toronto properties acquired from Choice Properties currently serve a wide range of TAMI users. In the future, Allied will operate these properties with the goal of being fully serviced by knowledge-based organizations. With pillarless floorboards and direct access to Toronto’s PATH network, the 110Yonge is particularly well suited for the ongoing transformation of TAMI users.
As downtown Vancouver transforms into Canada’s leading office market in 2017, Allied has made it part of its mission to become a leading provider of unique urban workspaces in the city. Allied’s portfolio has grown from five properties that make up GLA 285,476 sq ft at the end of 2016 to 13 properties that make up GLA 714,113 sq ft at the end of 2021. With the acquisition of 1508 West Broadway and 1185 West Georgia, Allied’s portfolio consists of 15 properties that make up a 1,027,344 square foot GLA. These properties are useful for a combination of knowledge-based organizations, including users of TAMI, engineering, and financial services. In the future, Allied will operate these properties with the goal of providing full service to knowledge-based organizations.
About selection properties
Choice Properties is a leading real estate investment trust that creates lasting value through the ownership, operation and development of high quality commercial and residential real estate. Choice Properties believes that value comes from creating spaces that improve the way tenants and communities live, work and connect together. Choice Properties strives to understand the needs of tenants and manage their properties to the highest standards. Choice Properties aims to develop a healthy and resilient community through a dedication to social, economic and environmental sustainability.
About the Allies
Allied is a leading operator of unique urban workspaces in major Canadian cities and densely networked UDC spaces in Toronto. Allied’s mission is to provide knowledge-based organizations with workspaces and UDC spaces that are sustainable and promote human health, creativity, connectivity and diversity. Allied’s vision is to continuously contribute to cities and cultures that enhance and inspire the humanity of all.
This press release contains (i) the Allies, (ii) its operations, strategies, financial performance and status, and (iii) future prospects for the completion and expected impact of the transactions being considered in this press release. May contain description. These statements generally refer to future prospects such as “may,” “do,” “expect,” “estimate,” “expect,” “intention,” “believe,” and “continue.” Can be identified using words about or their negative words. Similar variations. The actual results and performance of the Allies discussed here may differ materially from those expressed or implied by such statements. Such statements are fully modified by the inherent risks and uncertainties surrounding future expectations, including the expected impact on funding and earnings as the transactions intended here are completed. .. Key factors that can cause actual results to differ materially from expectations are, among other things, general economic and market conditions, competition, changes in government regulations, and the Allied Annual Information Form available at www. Includes the factors listed in “Risk Factors”. .sedar.com. These notices qualify all forward-looking statements resulting from the Allies and those acting on their behalf. Unless otherwise stated, all forward-looking statements are made only as of the date of this press release and the parties undertake no obligation to update such statements.
For more information, please contact:
Michael Emory, President and Chief Executive Officer
Tom Burns, Executive Vice President and COO
Cecilia Williams, Executive Vice President and CFO
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