Maguire Properties Inc.’s Chairman and Chief Executive Robert Maguire has proposed buying a majority of the company after selling off most of the office landlord’s holdings,except for buildings in Orange County.
A board committee has initially rejected the complex offer.
Robert Maguire’s proposal, announced on Monday, would keep the company’s founder and namesake in charge of the real estate investment trust’s OC holdings, which represent about 35% to 40% of Maguire Properties’ total portfolio.
Under the proposal, the company would sell off its Los Angeles and San Diego buildings, with proceeds going to shareholders.
Robert Maguire then would seek to acquire a 75% stake in the company’s remaining holdings in OC.
A committee of independent directors refused to consider the offer in its present form, saying his expression of interest “is subject to numerous, substantial contingencies and questions.”
The committee said it would allow Robert Maguire to firm up his proposal.
Maguire Properties became OC’s second-largest landlord last year, following its $3 billion acquisition of buildings formerly owned by Equity Office Properties Trust.
Those offices are now saddled with the vacancy rates of more than 30%,the worst seen in the company’s portfolio,thanks to the mortgage industry meltdown.
The company explored a sale earlier this year, but said it hadn’t received any offers that are strong enough.
