Maguire Properties Completes Disposition of Central Orange County Office Property (Business Wire)
Tue, 2 Jun 2009 12:30:00 Etc/GMT
The City Parkway disposition allowed the Company to eliminate the project-level debt that was scheduled to mature in 2010 and eliminate a master lease obligation with a potential exposure of up to approximately $12 million.
The sale was structured in a cooperative arrangement with the project lender and the Company facilitated the conveyance of the property to The Abbey Company. The Company incurred approximately $2 million in costs in connection with the sale, and the transaction resulted in a non-cash impairment charge of approximately $40 million.
Mr. Nelson C. Rising, President and Chief Executive Officer, commented, “We are extremely pleased to close this significant transaction, which eliminates in full our obligation under the project loan and a meaningful master lease obligation. Given these challenging times, I am equally pleased that all parties worked amicably together and generated a satisfactory result for all.”
About Maguire Properties, Inc.
Maguire Properties, Inc. is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. Maguire Properties, Inc. is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. For more information on Maguire Properties, visit our website at www.maguireproperties.com.
Business Risks
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: risks associated with the negative impact of the current credit crisis and economic slowdown; general risks affecting the real estate industry (including, without limitation, 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 availability and terms of financing and the use of debt to fund acquisitions and developments; risks associated with our ability to dispose of properties, if and when we decide to do so, at prices or terms set by or acceptable to us; risks associated with the potential failure to effectively manage our growth and expansion into new markets, to identify properties to acquire, to complete acquisitions or to integrate acquisitions successfully; risks and uncertainties affecting property development and construction; risks associated with increases in interest rates, volatility in the securities markets and contraction in the credit markets affecting our ability to refinance existing loans as they come due; risks associated with joint ventures; potential liability for uninsured losses and environmental contamination; risks associated with our potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended and possible adverse changes in tax and environmental laws; and risks associated with our dependence on key personnel whose continued service is not guaranteed.
For a further list and description of such risks and uncertainties, see our Annual Report on Form 10-K/A filed on April 30, 2009 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.
Contact:
Maguire Properties, Inc. Peggy Moretti Senior Vice President, Investor and Public Relations 213-613-4558
source: http://biz.yahoo.com/bw/090602/20090602005668.html?.v=3