Maguire to sell Orange County office property

NEW YORK Wed Jul 9, 2008 3:37am IST

Stocks

   

NEW YORK (Reuters) - Maguire Properties Inc MPG.N has agreed to sell a Southern California office property to Shorenstein Properties LLC for about $211 million, including the assumption of debt, to shore up Maguire's balance sheet.

The sale of Main Plaza includes a $10 million cash reserve, lowering the price for the real estate to $201 million, or about $331 per square foot. The price also includes the assumption of $161 million in debt for the property, the companies said on Tuesday.

Shorenstein acquired Main Plaza for its ninth fund, Shorenstein Realty Investors Nine LP, a $2.062 billion commingled fund formed in the spring of 2007.

The sale is expected to close in the third quarter.

Maguire said the deal is part of efforts to bolster its balance sheet. Its debt ballooned after the company paid $2.88 billion for 24 properties from Blackstone Group LP (BX.N) in May 2007. The failure of mortgage broker tenants has helped soften the real estate market in Southern California and lowered the value of Maguire's properties.

Main Plaza, which was part of the deal with Blackstone, is located in the heart of the Airport Area of Irvine in Orange County. It includes two 12-story office buildings and two free-standing smaller buildings totaling about 607,000 square feet.

"This transaction demonstrates our commitment to our stated objective of disposing of certain Orange County properties to accomplish our balance sheet objectives," Nelson Rising, president and chief executive, said in a statement.

On Monday, two of Maguire's biggest investors, hedge funds JMB Capital Partners and Third Point LLC, challenged the board's decision last month to reject a buyout bid from Pacific Office Properties.

JMB said it planned to put up a slate of candidates that would comprise at least a majority to the board.

Shares of Maguire closed 1.8 percent lower on Tuesday to $12.37.

(Editing by Tim Dobbyn)

  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage