Allied's completion of M4, King Toronto pending

Executive Summary

• Allied Properties Real Estate Investment Trust provided a material update on the completion status of its final two ground-up developments: M4 of Main Alley in Vancouver and King Toronto in Toronto.
• The update highlights significant leasing progress and tenant anchors, specifically Netflix as the principal tenant for M4 and Whole Foods Market for King Toronto, signaling strong demand for Allied's workspace offerings.
• The company reports that completing these projects has materially enhanced its ability to serve knowledge-based organizations, expanding its tenant base and geographic concentration in major urban centers.

Key Details

• M4 of Main Alley Campus (Vancouver):
  • Location: 108 East Fifth Ave., Mount Pleasant, Vancouver.
  • Structure: Nine-storey office building with 204,000 square feet of gross leasable area (GLA).
  • Ownership: To be fully owned by Allied by the end of the third quarter.
  • Leasing Status: Currently 77% leased.
  • Principal Tenant: Netflix occupies 110,600 square feet, currently being built out for active occupancy.
  • Leasing Outlook: Allied expects to finalize a lease expansion agreement before closing, bringing M4 to 90% leased.
  • Rent Commencement: Scheduled for early 2026.
  • Overall Goal: Consistent with an outlook for leased area at the end of 2025.
• King Toronto (Toronto):
  • Location: 489, 539 King St. West, King West Village, Toronto.
  • Structure: 440 residential condominium units over 16 storeys; 80,000 square feet of office space (2nd and 3rd storeys); 120,000 square feet of retail space (at and below grade).
  • Completion Timeline: Expected by the end of 2026.
  • Retail Anchor: Allied and Westbank finalized a 20-year lease with Whole Foods Market for 28,291 square feet below grade and 4,587 square feet at grade.
  • Strategic Positioning: King Toronto is expected to become a focal point of King West Village, complementing nearby Allied-operated properties like "The Well" and future Allied Flex developments.
• Strategic Impact:
  • Completion of the pipeline initiated in 2012 has expanded Allied's range of workspace options (Allied Heritage, Allied Modern, and Allied Flex).
  • Increased concentration in stronger, larger mixed-use, amenity-rich urban neighborhoods.
  • Expanded base of high-quality office and retail tenants.

Notable Quotes

• "Completing the large, multicity development pipeline we initiated in 2012 has materially enhanced our ability to serve knowledge-based organizations," said Michael Emory, founder and executive chair. "We now have a much broader base of high-quality office and retail tenants, an expanded range of workspace options (Allied Heritage, Allied Modern and Allied Flex) and greater concentration in stronger and larger mixed-use, amenity-rich urban neighbourhoods."