SINGAPORE--()--As part of its efforts to strengthen its portfolio of commercial properties and enhance long term shareholder value, Overseas Union Enterprise Limited (“OUE” or the “Group”) is pleased to announce it is to acquire the US Bank Tower and related properties Maguire Gardens and a car park facility in downtown Los Angeles.
“After a successful 2012, OUE is seeking new avenues for growth where value can be identified and realized. We intend to bring our knowledge and network to bear in pursuing new opportunities to generate value for shareholders.”
US Bank Tower is a Class A office property at the foot of Bunker Hill. Rising to 1,018 feet, with 72 floors of office accommodation and six levels of underground parking, it has an area of approximately 1.4 million square feet. The building was completed in 1989. US Bank Tower is about 56.3% occupied with a diverse tenant base.
The total acquisition price is US$367,500,000, or approximately S$459,375,000 (based on an exchange rate of US$1.00 : S$1.25). OUE, through its wholly-owned U.S. subsidiary Beringia Central LLC, is acquiring the properties from Library Square Associates, LLC, a subsidiary of MPG Office Trust Inc. (NYSE:MPG), a US REIT.
Building on OUE’s strengths
OUE Executive Chairman Dr Stephen Riady commented, “After a successful 2012, OUE is seeking new avenues for growth where value can be identified and realized. We intend to bring our knowledge and network to bear in pursuing new opportunities to generate value for shareholders.”
He added, “US Bank Tower is a well-positioned building that we expect to appeal to a broad base of both local and international office tenants operating in California.”
OUE intends to leverage on its strengths in leasing and asset repositioning to increase occupancy and net operating income yield on the asset. OUE has developed expertise from its active lease management of office and retail properties in Singapore. The Singapore focus will continue after this acquisition.
About Overseas Union Enterprise Limited
Overseas Union Enterprise Limited (SGX-ST: “OUE”) is a diversified real estate owner, developer and operator with a complete portfolio of prime assets in key locations in Singapore, and hotels in Malaysia and the People’s Republic of China.
OUE consistently grows its business by leveraging its brands and proven expertise in developing and managing landmark assets across the commercial, hospitality, retail and residential sectors primarily in Singapore. With its core strategy of investing in and enhancing a stable of distinctive properties, OUE is committed to developing a portfolio that has a strong recurrent income base, balanced with development profits, to enhance long-term shareholder value.
For the latest news from OUE, visit us at www.oue.com.sg
About 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, Inc., visit its website at www.mpgoffice.com