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U.S. Bank Tower, tallest building west of Mississippi, changes hands

The logo of US Bank is seen atop the US Bank Tower in downtown Los Angeles July 17,2012. REUTERS/Fred Prouser
The logo of US Bank is seen atop the US Bank Tower in downtown Los Angeles July 17,2012. REUTERS/Fred Prouser

(Reuters) - The U.S. Bank Tower in Los Angeles, the tallest building west of the Mississippi, and related properties is being sold for $367.5 million to Overseas Union Enterprise Ltd, a hotel and property group controlled by Indonesia's Lippo Group.

The half empty 72-floor tower, reportedly a planned target in the September 11 attacks, is currently owned by a unit of MPG Office Trust.

The U.S. Bank Tower's mortgage loan of about $260 million was set to mature on July 1, 2013. MPG had said, as recently as November, that it had no intentions to sell the building, which is 56 percent occupied.

Ratings agency Fitch has warned that the 1,018 ft building was in danger of an imminent default and its loan had been transferred to a debt workout firm, the Wall Street Journal reported in December.

MPG, which primarily owns and operates office properties in California and Colorado, said it will receive $103 million from the sale of the building, and plans to use the proceeds to refinance debt.

Its 2013 debt maturities total about $638 million from its ownership of the KPMG Tower and 777 Tower in Los Angeles.

Singapore-listed OUE, which recently lost out on a bid to buy property and drinks conglomerate Fraser and Neave Ltd, will acquire Maguire Gardens and a car park as part of the deal.

(Reporting by A. Ananthalakshmi in Bangalore; Editing by Rodney Joyce)

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