Maguire Properties completes $100 mln financing
Sept 30 (Reuters) - Maguire Properties Inc (MPG.N), a Southern California-focused real estate investment trust, said it completed a $100 million financing and paid down $33 million on another loan, in an effort to reduce its debt.
The Los-Angeles-based company secured a new mortgage on its Plaza Las Fuentes property, located in Pasadena, California, and extended the maturity on a construction loan for another property in Irvine, California, until September 2009.
"In connection with the extension, the company paid down $33 million on the loan and increased the tenant improvement reserve by $7.5 million," Maguire said. It also funded a $12.6 million cash collateralized letter of credit which may be utilized by the lender to further amortize loan principal, it said.
Plaza Las Fuentes features the Westin Pasadena Hotel and an eight-story office building, shops and restaurants totaling about 193,000 square feet, the company said.
"We are extremely pleased to complete this important transaction, particularly given current market conditions," Maguire Chief Executive Nelson Rising, said in a statement.
U.S. commercial real estate overall is facing a slower leasing market as consumers rein in their spending and businesses contract. Commercial real estate relies heavily on debt to finance properties and boost returns. (Reporting by Ajay Kamalakaran in Bangalore; Editing by Lincoln Feast)
