Allied to Acquire the Dominion Building in Vancouver From Army & Navy Properties
October 12 2021 - 5:00PM
Allied Properties Real Estate Investment Trust (“Allied”)
(TSX:AP.UN) announced today that it will acquire the Dominion
Building in Vancouver from Army & Navy Properties.
The Dominion Building is designated as a Class A
heritage structure, as is Allied’s Sun Tower just to the southeast.
Completed in 1910 and known as the Dominion Trust Building, it was
the tallest commercial building in the British Empire for a brief
time, rising 53 meters over 13 storeys. On completion in 1912, Sun
Tower (known initially as the World Building after The Vancouver
World newspaper) superseded the Dominion Trust Building, rising 82
meters over 17 storeys.
The Dominion Trust, which later became The
Dominion Bank, completed the building in the midst of a remarkable
economic boom. It was part of a larger effort to make Vancouver the
financial hub of Western Canada. Like many bank buildings that
followed, it had a grand banking hall at the base extending over
the entire lot and somewhat smaller floors above for front- and
back-office use. Because the lot was trapezoidal, the architect
designed the building with “flat-iron” proportions. The “flat”
portion faces southeast (toward Sun Tower) at the intersection of
West Hastings and Cambie Streets.
Samuel Cohen, Founder of Army & Navy
Department Stores, acquired the Dominion Building in 1943, and the
Cohen family has operated it ever since with sensitivity and
commitment to the needs and evolution of the surrounding Downtown
Eastside neighbourhood. Over that time, the Dominion Building has
remained a visual, economic and social landmark in Downtown
Vancouver.
“We’ll be a worthy successor owner to Army &
Navy Properties in terms of both sensitivity and commitment to
Downtown Vancouver,” said Michael Emory, Allied’s President &
CEO. “Because of its location, building attributes and operating
history over many decades, the Dominion Building will enable us to
accommodate smaller users who need more flexible lease terms. This
will be particularly helpful as we reconfigure other buildings with
larger floorplates to accommodate larger users with longer-term
requirements.”
Tech, advertising, media and information (TAMI)
users are propelling the Vancouver office market to new heights.
They are also exhibiting a decided preference for the area of
Downtown Vancouver east of Granville Street, which includes
Allied’s entire Vancouver portfolio. As in other major Canadian
cities, TAMI users in Vancouver prefer to be in mixed-use,
amenity-rich urban neighbourhoods. The Dominion Building is located
at the eastern edge of Gastown and is equidistant from Allied’s The
Landing (375 Water Street at the other end of Gastown) and Allied’s
Sun Tower (128 West Pender Street in Crosstown). It includes
approximately 80,000 square feet of leasable area.
Allied is first, foremost and above all a
commercial-real-estate operating platform. Its mission is to
provide distinctive urban workspace and network-dense
urban-data-centre (UDC) space to the broadest possible spectrum of
knowledge-based organizations in Canada’s major cities. More than
anything else, Allied is defined by the organizations it serves and
by the humanistic values it has adopted. Its investment and
operating focus evolved in response to the express needs of
knowledge-based organizations over the past few decades and will
continue to evolve in that manner going forward.
Allied expects the acquisition of the Dominion
Building to close in mid-November of 2021, subject to customary
conditions. Allied expects to fund the acquisition with its
operating line of credit in the near term. On that basis, Allied
expects the acquisition to be accretive to annual FFO and AFFO per
unit from the outset.
About Allied
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.
Cautionary Statements
This press release may contain forward-looking
statements with respect to (i) Allied, (ii) its operations,
strategy, financial performance and condition and (iii) the
expected impact of the transactions contemplated in this press
release. 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 transaction
contemplated herein is completed and have the expected impact on
funding and earnings. Important factors that could cause actual
results to differ materially from expectations include, among other
things, general economic and market conditions, 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.
For more information, please
contact:
Michael Emory, President & CEO (416)
977-0643 memory@alliedreit.com
Cecilia Williams, Executive Vice President &
CFO(416) 977-9002cwilliams@alliedreit.com
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