Overseas Union enterprise Ltd. (OUE), a major Singapore based hospitality and property group, has announced that it will be buying the U.S. Bank Tower in downtown Los Angeles, California, for $367.5 million in an effort to expand its portfolio in the country.
"U.S. 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," Stephen Riady, OUE Executive Chairman, said in a statement to Bloomberg.
OUE will also be acquiring the adjoining 2.3 acre Maguire Gardens and a nearby parking space as well.
The building and the area is owned by Library Square associates and managed by its subsidiary, MPG Office Trust Inc. Currently, the tower is only 56 percent occupied. In November 2012, MPG authorities stated that it did not want to sell the building.
However, MPG decided to sell as the mortgage loan taken to build the tower now stands at a massive $260 million and is set to mature by July 2013. The Office Trust hopes to refinance the debt using the sale money, reports Reuters.
The U.S. Bank Tower is the tallest in California spanning a height of around 310 meters with 72 floors and two basement floors. It is also the tenth tallest building in the country. It was built by a major construction company; Turner Construction. Work on the building started in 1987 and was completed by 1989.
According to the 9/11 Commission, a committee that investigated the September 11 attacks, the U.S. Bank tower was a prospective victim tower where one of the ten hijacked planes intended to crash.
However, the building is soon set to lose its "tallest building of California" title as another office and hotel tower- The Wilshire Grand, is set to open in 2017. The new building will stand at a height of 335 meters, which is around 25 meters taller than the U.S. Bank Towers. The Wilshire Grand is being developed by the Korean Airlines.
