OUE Commercial REIT's OUE Downtown (Photo: REITsWeek)OUE Commercial REIT's OUE Downtown (Photo: REITsWeek)

OUE Commercial REIT has declined to acquire a Grade A office tower in downtown Los Angeles.

A right of refusal (ROFR) to acquire the property, US Bank Tower, was granted by the REIT’s sponsor, OUE Limited, to the REIT’s trustee in 2014.

The property features 72 floors of office accommodation and six levels of underground parking.

The purchase consideration for the property is USD430 million.

The trustee has considered the offer and is of the view that acquiring US Bank Tower based on the proposed terms would not be accretive to OUE C-REIT's distribution per unit, said the REIT.

As such, the acquisition opportunity has been declined.

OUE Commercial REIT will continue to explore opportunities for the acquisition of yield-accretive assets which are in line with its investment criteria and strategy, said its manager.

The REIT was last done on the Singapore Exchange (SGX) at SGD0.39, which is a discount of 40% to net asset value according to data compiled in the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.