Mr. Michael Emory reports

ALLIED TO ACQUIRE MAJOR CLASS I COMPLEX IN MONTREAL

Allied Properties Real Estate Investment Trust has entered into an agreement to acquire a large and important Class I complex in Montreal, 747 Square-Victoria St., for $276-million. The agreement is subject to regulatory approval but not subject to due diligence, which Allied has completed to its satisfaction.

747 Square-Victoria St., Montreal

747 Square-Victoria is a Class I complex located in the heart of the international quarter, a heritage- and amenity-rich area that connects the downtown core with Old Montreal. It will enhance Allied's ability to serve knowledge-based organizations in urban Montreal as it transforms to a primary North American office market for TAMI (tech, advertising, media and information) users.

Comprising a large part of the city block bounded by Saint-Antoine on the north, Saint-Pierre on the east, Saint-Jacques on the south and Square-Victoria on the west, 747 Square-Victoria was created by integrating heritage structure along Saint-Antoine and Saint-Jacque with new structure along a historic laneway (Ruelle des Fortifications) that extends the length of the block from Saint-Pierre to Square-Victoria. Now an integral part of the complex, the laneway rises to a glass canopy along the roofline of the integrated structures forming an atrium that facilitates access to the extensive retail and office uses within the complex. Completed in the early 1990s, the complex comprises 519,574 square feet of office gross leasable area (GLA), 43,015 square feet of retail GLA and 858 underground parking spaces. The possibility exists to create additional office and retail GLA by transforming portions of the common areas and adding approximately 60,000 square feet of office GLA. The complex is 90.7 per cent leased and has a weighted average lease term in excess of six years.

747 Square-Victoria is located in close proximity to (and is essentially connected with) Allied's 700 de la Gauchetiere St. W (700 DLG) and 425 Viger Ave. W. The proximity and connectivity will enhance Allied's ability to co-ordinate and enrich the user experience at all three buildings over time.

On closing, 747 Square-Victoria will be free and clear of mortgage financing. Allied has financed the acquisition cost on an essentially leverage-neutral basis with its recently completed equity offering. This will be accretive to Allied's funds from operations and adjusted funds from operations per unit at the outset and will become more accretive with each passing year.

Urban Montreal

Allied has owned, managed and redeveloped urban workspace in Montreal since 2005. It currently owns 20 urban properties that collectively comprise 5.6 million square feet of GLA, including 700 DLG (1,000,969 square feet), 5445 de Gaspe Ave and 5455 de Gaspe Ave. (969,558 square feet), Cite Multimedia (958,849 square feet), and Nordelec (877,376 square feet).

Montreal has emerged as a premier urban environment in Canada for knowledge-based organizations. This derives in large part from the number and quality of the institutions of higher learning in the city. The scale and quality of the built-legacy in Montreal has also contributed to its remarkable emergence in the past decade.

About Allied Properties Real Estate Investment Trust

Allied is a leading owner, manager and developer of: (i) distinctive urban workspace in Canada's major cities; and (ii) network-dense urban data centres in Toronto that form Canada's hub for global connectivity. Allied's business is providing knowledge-based organizations with distinctive urban environments for creativity and connectivity.

We seek Safe Harbor.