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MPG Office Trust Completes Disposition of Mission City Corporate Center

^{Published on 2010-07-12 16:55:25 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--MPG Office Trust, Inc. (NYSE:MPG), a Southern California-focused real estate investment trust, announced today it has completed the disposition of Mission City Corporate Center in the Mission Valley submarket of San Diego, California.

"We are pleased with the timing and execution of this transaction. The Company remains focused on addressing its liquidity issues, extending debt maturities and increasing the occupancy of the portfolio and I am pleased with the progress we have made thus far."

In connection with the disposition of this non-core asset, the Company was able to eliminate $52.0million of debt. The Company previously announced the disposition of 2385 Northside, a development property which was part of the Mission City Corporate Center, for approximately $18.0 million. The Company used proceeds from that transaction to repay the $17.6 million construction loan that was scheduled to mature in August 2010 and eliminated a $4.0 repayment guaranty.

Nelson C. Rising, President and Chief Executive Officer of MPG Office Trust, Inc., commented, aWe are pleased with the timing and execution of this transaction. The Company remains focused on addressing its liquidity issues, extending debt maturities and increasing the occupancy of the portfolio and I am pleased with the progress we have made thus far.a

About MPG Office Trust, Inc.

MPG Office Trust is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. MPG Office Trust is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. For more information on MPGOfficeTrust, visit our website at [ www.mpgoffice.com ].

Business Risks

This press release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include: risks associated with managementa™s focus on asset dispositions, loan defaults, cash generation and general strategic matters; risks associated with the timing and consequences of loan defaults and related asset dispositions; risks associated with contingent guaranties by our Operating Partnership; risks associated with our liquidity situation; risks associated with the continued or increased negative impact of the current credit crisis and global economic slowdown; general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases at favorable rates, dependence on tenantsa™ financial condition, and competition from other developers, owners and operators of real estate); risks associated with the availability and terms of financing and the use of debt to fund acquisitions and developments; risks associated with our ability to dispose of properties, if and when we decide to do so, at prices or terms set by or acceptable to us; risks and uncertainties affecting property development and construction; risks associated with increases in interest rates, volatility in the securities markets and contraction in the credit markets affecting our ability to extend or refinance existing loans as they come due; risks associated with joint ventures; potential liability for uninsured losses and environmental contamination; risks associated with our potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks associated with our dependence on key personnel whose continued service is not guaranteed.

For a further list and description of such risks and uncertainties, see our Annual Report on Form 10-K/A filed on April 30, 2010 with the Securities and Exchange Commission. The Company does not update forward-looking statements and disclaims any intention or obligation to update or revise them, whether as a result of new information, future events or otherwise.