Brookfield Office Properties Inc. (BPO), a developer of premium office properties, Thursday said its newly formed DTLA Holdings will acquire MPG Office Trust, Inc. (MPG), an operator of Class A office properties.
Under the terms of the, the holders of MPG's common shares will receive $3.15 per share in cash. The price represents a 21 percent premium to MPG's closing share price of $2.60 on April 24.
Brookfield's contribution to DTLA Holdings will total approximately $550 million, which consists of equity in its existing Downtown Los Angeles assets totaling $410 million, as well as an additional investment of $140 million. Adding to this, institutional investor partners have collectively pledged approximately $600 million to DTLA Holdings.
DTLA Holdings will be sponsored and managed by BPO, which will own approximately 47 percent of the fund, and institutional partners will hold the remaining 53 percent interest, Brookfield said in a statement.
The transaction is excepted to close in the third quarter of this fiscal.
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