UPDATE 1-Allied Properties to raise C$50 mln in bought deal

* Says to issue 2,376,000 units for $21.05 apiece

* Sale at 2 pct discount to Wednesday close

* Says to use proceeds for acquisition credit line

Aug 26 (Reuters) - Canada's Allied Properties REIT (AP_u.TO) will raise C$50 million on a bought-deal basis to pay down credit available for acquisitions, and said it remains committed to the acquisition target of C$100-C$150 million for 2010.

Allied Properties, which owns and develops business offices, said the offering would also give the REIT full access to its C$70 million credit line for expected acquisitions for the rest of the year.

Allied Properties has agreed to issue to the public 2,376,000 units for C$21.05 apiece -- a discount of 2 percent to the units' close on Wednesday.

The REIT has also granted the underwriters, led by Scotia Capital, an option to buy up to an additional 356,400 units, exercisable at any time for a period of 30 days following the closing of the offering, expected by Sept. 15.

Toronto-based Allied Properties shares, which have gained about 11 percent in the first half of the year, closed at C$21.51 Wednesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore)