MPG Could Sell Downtown Skyscrapers Next Year

Posted: Monday, August 13, 2012 5:45 am | Updated: 2:41 pm, Fri Aug 10, 2012.

DOWNTOWN LOS ANGELES - As Downtown-based office building giant MPG Office Trust has strived to reduce a mountain of debt in recent years, the company has largely held on to its Central City skyscrapers.

That was partly business strategy — the firm had indicated that it was inclined to keep its Central City holdings while it sold non-core assets in other markets. It was also financial imperative: After the ouster of CEO Robert F. Maguire in 2008, Maguire nevertheless retained 50% ownership of several buildings, including Downtown’s US Bank Tower, KPMG Tower and Wells Fargo Tower. The company was handcuffed from selling those properties before 2016 because Maguire’s share entitled him to special tax protections — if MPG sold one of the properties, it would have had to pay the taxes on the former executive’s personal gains. On Aug. 3, however, MPG announced that Maguire has swapped his so-called partnership units for common shares. The move essentially accelerates the 2016 deadline to June 27, 2013, and frees MPG to sell core assets without having to pay Maguire. The company has not indicated plans to sell the properties, but the affected sites also include the Gas Company Tower. Company officials declined to comment.

©Los Angeles Downtown News.