OUE shells out S$459m for US Bank Tower in Los Angeles

Related properties are also bought.

In a release, Overseas Union Enterprise announced it is to acquire the US Bank Tower and related properties Maguire Gardens and a car park facility in downtown Los Angeles.

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. (NSYE:MPG), a US REIT.

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.