Indonesian billionaire Stephen Riady to buy US Bank Tower for $367.5 mn

Overseas Union Enterprise Limited (OUE), an Singapore-based hotel and property company run by Indonesian billionaire Stephen Riady, today said that it will acquire the US Bank Tower and other related assets in Los Angeles, for $367.5 million.

OUE, which last year lost out in a bidding war with Thai billionaire Charoen Sirivadhanabhakdi for Fraser and Neave, will acquire the 72-floor office building, the adjacent Maguire Gardens park, and a car park from a unit of Los Angeles-based real-estate investment trust MPG Office Trust Inc.

Located in downtown Los Angeles, US Bank Tower has an area of about 1.4 million sqft and is currently about 56.3 per cent occupied, OUE said in a statement.

OUE executive chairman, Stephen Riady, said,  ''After a successful 2012, OUE is seeking new avenues for growth where value can be identified and realised. We intend to bring our knowledge and network to bear in pursuing new opportunities to generate value for shareholders.''

''US Bank Tower is a well-positioned building that we expect to appeal to a broad base of both local and international office tenants operating in California,'' he added.

OUE intends to leverage on its strengths in leasing and asset repositioning to increase occupancy and net operating income yield on the asset. OUE has developed expertise from its active lease management of office and retail properties in Singapore.

OUE is a diversified real estate owner, developer and operator with a portfolio of assets in key locations in Singapore, and hotels in Malaysia and China.