Macquarie holds an 80% interest in the venture while Maguire, in addition to its 20% interest, will receive fees for asset management and other services. Those fees could turn out to be one of the best parts of the deal for Maguire, according to Craig Silvers, a REIT industry analyst and principal of locally based Bricks & Mortar Capital.

Silvers tells GlobeSt.com that the fees have the potential to increase Maguire's return on equity. Although the specific terms of the Maguire-Macquarie arrangement were not disclosed, industry reports show that other REITs have added "from 100 to 400 basis points to their return on equity" from similar arrangements, he says.

The deal improves Maguire's balance sheet "by getting the debt off the books and bringing in cash," Silvers adds. He says the cash realized from the venture also will help Maguire to diversify its holdings.

The six assets initially held by the joint venture include five Maguire properties and one, Stadium Gateway in Anaheim, contributed by Macquarie. The five Maguire assets include One California Plaza in Los Angeles, Cerritos Corporate Center in Cerritos, the Washington Mutual Campus in Irvine, San Diego Tech Center in San Diego and the Wells Fargo Center in Denver.

Deutsche Bank was the financial adviser to Maguire Properties in the transaction, which is one of a number of joint ventures that Macquarie has arranged with US-based REITs.

Instant Insights /

GlobeSt.com UPDATE: Maguire Closes $1B Macquarie Venture

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