Allied Properties REIT sells non-core asset and acquires Toronto property
Allied Properties REIT is to sell 860 Richmond Street West in Toronto for USD6.3 million.
The sale is expected to close in late November, subject to customary conditions.
The 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.
Allied has also entered into an agreement to purchase 460 King Street West in Toronto for USD15 million. The purchase is expected to close in August, subject to customary conditions.
"We continue to evaluate the disposition of non-core assets in our portfolio," says Michael Emory, president and chief executive. "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."
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