Allied Properties Real Estate Investment Trust Announces Closing of Class I Office Acquisitions in Toronto

   Allied Properties REIT (TSX: AP.UN) announced today that it has closed the acquisition of 49 Front Street East and 252-264 Adelaide Street East in downtown Toronto. Located on the south side of Front Street and one building east of Allied's Beardmore and Perkins/Dixon buildings, 49 Front Street East is a Class I office property with 19,936 square feet of GLA. Located on the north side of Adelaide Street East, just east of Jarvis Street, 252-264 Adelaide Street East is a Class I office property with 50,217 square feet of GLA. Both properties are fully leased to tenants consistent in character and quality with Allied's tenant base and are historically designated. The Adelaide property comes with the right to purchase 20 underground parking spaces at $25,000 per space upon completion of the adjacent condominium project and the right to use 20 surface parking spaces at no cost in the interim.

Allied Properties REIT is a leading owner, manager and developer of urban office environments that enrich experience and enhance profitability for business tenants operating from Toronto, Montreal, Winnipeg, Quebec City, Kitchener-Waterloo and Calgary. Its objectives are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.

Contacts: Allied Properties REIT Michael R. Emory President and Chief Executive Officer [phone] [e-mail]