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MPG Office Trust Facilitates Disposition of Park Place II in Orange County

^{Published on 2010-07-12 13:35:49 - 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 ParkPlaceII in the Irvine submarket of Orange County, California. The sale was structured in a cooperative arrangement with the special servicer, and the Company facilitated the conveyance of the property to Layton Belling Associates.

The mortgage loan on Park Place II was in default. As a result of the disposition, we were relieved of the obligation to repay the $98.5 million principal balance of the loan as well as accrued contractual and default interest. The assets and liabilities of Park Place II will be removed from our balance sheet in the third quarter of 2010.

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 Form10-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.