Singapore-listed property developer OUE Limited will sell the U.S. Bank Tower, a Class A office property located in downtown Los Angeles, California for US$430 million (S$597.7 million).
According to a statement by the company, Beringia Central LLC, an indirect wholly-owned subsidiary of OUE Limited, has entered into a sale and purchase agreement with the purchaser, USBT Property Owner LP.
The property was acquired by Beringia Central in 2013 for US$367.5 million (S$459,3 million) from MPG Office Trust, Inc. and underwent a series of asset enhancement works, including the launch of OUE Skyspace LA, an open-air observation deck. The company has invested nearly $100 million in renovation and improvements.
”The disposal is a strategic sale entered into after evaluating the Group’s inventory of assets, and even though the property is being divested below its valuation. (As disclosed in the Company’s Annual Report 2019, the fair value of the Property as at 31 December 2019 was US$650,000,000.)” the company said in the statement.
The iconic U.S. Bank Tower is a Class A office property located at 633 West 5th Street, as well as the adjacent Maguire Gardens and West Lawn, located at 524 South Flower Street, in Los Angeles, California.
Completed in 1989, formerly known as the Library Tower and First Interstate Bank World Center, U.S. Bank Tower is a 72-storey Class A property with net lettable area of approximately 1.4 million sq ft and six levels of underground parking located in the upscale Bunker Hill district in downtown Los Angeles.