a blockbuster deal, Brookfield Office Properties Inc. is paying about
$430 million for some of the most prominent buildings on the city
skyline, including Gas Company Tower and Wells Fargo Tower.
pending deal marks the end of one of Los Angeles' most celebrated
office developers, MPG Office Trust, the financially struggling firm
that just last month agreed to sell U.S. Bank Tower, the tallest
building in the West, to foreign investors.
by Robert F. Maguire in the 1960s, MPG was the best-known builder of
top-flight office space in Southern California during the construction
boom of the 1980s and 1990s. Maguire left the company once known as
Maguire Thomas Properties in 2008.
With MPG's departure, Brookfield will become the dominant operator of prime office space in the city's financial core and play a major role in setting rents in downtown Los Angeles.
terms of the deal that would still have to be approved by
shareholders, holders of MPG's common shares will receive $3.15 per
share in cash at the closing of the merger. The per share price
represents a 21% premium to MPG's closing share price of $2.60 on
A subsidiary of Brookfield offered to buy MPG's outstanding preferred shares for $25 per share in cash. The company also has about $2 billion in debt that Brookfield's newly formed subsidiary would assume.
"Following a lengthy and exhaustive search, we have found a strategic buyer who has the capital and the market presence to appreciate the potential long-term value of our assets," said David Weinstein, chief executive of MPG. The merger is expected to close in the third quarter of this year."