MPG Office Trust Enters into Agreement to Sell U.S. Bank Tower in Downtown
LOS ANGELES -- March 11, 2013
MPG Office Trust, Inc. (NYSE: MPG) has entered into an agreement with an
affiliate of Overseas Union Enterprise Limited (Singapore Stock Exchange: OUE)
to sell U.S. Bank Tower and Westlawn Garage, each located in Downtown Los
The purchase price is $367.5 million. The transaction is scheduled to close on
June28,2013, following the expiration of the tax protection period on
June27,2013. The buyer has made a non-refundable deposit in the amount of
$7.5million. The transaction is subject to customary closing conditions. Net
proceeds from the transaction are estimated to be approximately $103million
and will be available for general corporate purposes, including potential loan
rebalancing in connection with the refinancing of the Company’s upcoming 2013
MPG Office Trust, Inc.
MPG Office Trust, Inc. is the largest owner and operator of Class A office
properties in the Los Angeles central business district. MPG Office Trust, Inc
is a full-service real estate company with substantial in-house expertise and
resources in property management, leasing and financing. For more information
on MPG Office Trust, visit our website at www.mpgoffice.com.
This press release contains forward-looking statements based on current
expectations, forecasts and assumptions that involve risks and uncertainties
that could cause actual outcomes and results to differ materially. These risks
and uncertainties include, without limitation: risks associated with our
liquidity situation, including our failure to obtain additional capital or
extend or refinance debt maturities; risks associated with our failure to
reduce our significant level of indebtedness; risks associated with the timing
and consequences of loan defaults and non-core asset dispositions; risks
associated with our loan modification and asset disposition efforts, including
potential tax ramifications; risks associated with our ability to dispose of
properties with potential value above the debt, if and when we decide to do
so, at prices or terms set by or acceptable to us; general risks affecting the
real estate industry (including, without limitation, the market value of our
properties, the inability to enter into or renew leases at favorable rates,
dependence on tenants’ financial condition, and competition from other
developers, owners and operators of real estate); risks associated with the
continued disruption of credit markets or a global economic slowdown; risks
associated with the potential loss of key personnel (most importantly, members
of senior management); risks associated with our failure to maintain our
status as a REIT under the Internal Revenue Code of 1986, as amended, and
possible adverse changes in tax and environmental laws; and potential
liability for uninsured losses and environmental contamination.
For a further list and description of such risks and uncertainties, see our
Annual Report on Form10-K filed on March15,2012 with the Securities and
Exchange Commission. The Company does not update forward-looking statements
and disclaims any intention or obligation to update or revise them, whether as
a result of new information, future events or otherwise.
MPG Office Trust, Inc.
Executive Vice President, Investor and Public Relations
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