AP.UN Allied Properties Real Estate Investment Trust

Allied Properties REIT (TSX:AP.UN) announced today that it has entered into an
agreement to sell 860 Richmond Street West in Toronto for $6.3 million. The sale
is expected to close in late November, subject to customary conditions. Allied
also announced that it has entered into an agreement to purchase 460 King Street
West in Toronto for $15 million. The purchase is expected to close in August,
subject to customary conditions.


860 Richmond Street West

This property was acquired in 2008 as part of a portfolio acquisition that
included Allied's King & Spadina intensification properties, 489, 495 & 499 King
Street West in Toronto. It is neither strategic to Allied nor particularly well
located within the King West submarket for office use. The financial terms of
the sale are attractive relative to Allied's initial acquisition cost and the
current fair value of the property. 


"We continue to evaluate the disposition of non-core assets in our portfolio,"
said Michael Emory, President & CEO. "Our goal is to improve our return on
equity over time by recycling capital into value-creation and consolidation
opportunities within our primary target markets, Montreal, Toronto, Calgary and
Vancouver." 


460 King Street West

Located on the northwest corner of King Street West and Spadina Avenue, this
property is comprised of a vacant heritage building with approximately 20,000
square feet of GLA and 4,224 square feet of surplus land. The site is
rectangular in shape with 8,960 square feet of area, 70 feet of frontage on King
West and 128 feet of frontage on Spadina. 


The property is immediately south of Allied's parking lot (11,228 square feet)
at 78 Spadina, which is immediately south of two of Allied's Class I office
properties, 80-82 Spadina and 96 Spadina. With the property, Allied will own the
entire stretch on the west side of Spadina between Adelaide and King West and
virtually the entire stretch on the north side of King West between Spadina and
Brant.


The building on the property was built as the Richardson House Hotel in 1875. It
became the Falconer Hotel in 1906 and the Spadina Hotel in the 1920s. Most
recently, it was used by Global Village Backpackers as a tourist hostel. In
1985, the building was listed on Toronto's Inventory of Heritage Properties.


The property will be free and clear of mortgage financing on closing. Allied
plans to restore the property for retail use at grade and office use above
grade. During the restoration and leasing process, Allied will carry the
property as a Property Under Development for accounting purposes. Allied does
not intend to place mortgage financing on the property prior to completion of
the restoration process.


"This landmark corner property completes our ownership along the eastern and
southern perimeters of one of the most important city blocks in Downtown West,"
said Michael Emory, President & CEO. "We are sensitive to the heritage value of
the property and look forward to restoring it accordingly." 


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.


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 REIT
Michael R. Emory
President and Chief Executive Officer
(416) 977-0643
memory@alliedreit.com

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