MPG Office Trust, Inc. (NYSE: MPG), a Southern California-focused real estate investment trust, today reported results for the quarter ended March 31, 2012.
Significant First Quarter Events
- We had $212.8 million of cash as of March 31, 2012 (excluding restricted cash related to mortgages in default), of which $166.7 million was unrestricted and $46.1 million was restricted.
- On February 2, 2012, trustee sales were held with respect to 700 North Central and 801 North Brand as part of cooperative foreclosure proceedings. As a result of the foreclosures, we were relieved of the obligation to repay the $27.5 million mortgage loan secured by 700 North Central and the $75.5 million mortgage loan secured by 801 North Brand as well as accrued contractual and default interest on both loans. In addition, we received a general release of claims under the loan documents pursuant to our previous in-place agreements with the special servicer.
- On March 23, 2012, Two California Plaza was placed in receivership pursuant to a written stipulation with the special servicer.
- On March 30, 2012, the transactions announced on October 31, 2011 between the Company, Charter Hall Office REIT and affiliates of Beacon Capital Partners, LLC were completed.
At the closing of the transactions, the Company, together with Charter Hall Office REIT, sold its interests in Wells Fargo Center, located in Denver, Colorado, and San Diego Tech Center, located in San Diego, California, to Beacon Capital. In addition, the Company sold its development rights and an adjacent land parcel at San Diego Tech Center to Beacon Capital and received a payment in consideration for terminating its right to receive certain fees from the joint venture following the closing date. We received net proceeds from these transactions totaling approximately $45 million, which will be used for general corporate purposes.
The Company has entered into a new joint venture agreement with Beacon Capital. Under this agreement, the joint venture will continue to own One California Plaza, located in Downtown Los Angeles, Cerritos Corporate Center, located in Cerritos, California, and Stadium Gateway, located in Anaheim, California (which is currently under contract for sale, subject to customary closing conditions). The new joint venture agreement provides for a three-year lockout period, during which time neither partner will have the right to exercise the marketing rights under the new joint venture agreement. The Company continues to maintain a 20% interest in the joint venture.
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