TrizecHahn, Maguire Halt Project Talks

Los Angeles-based real estate developer Maguire Partners and Canadian real estate company TrizecHahn Corp. on Wednesday said they had ended negotiations to create a joint venture.

TrizecHahn said it suspended talks “until further notice” that would have resulted in the Canadian company acquiring a majority stake in one of Los Angeles’ largest development companies. The Toronto-based company issued the announcement after the Wall Street Journal reported that an agreement had been reached.

TrizecHahn said the talks were halted because of “the current market environment and in view of TrizecHahn’s primary objective to undertake the previously announced corporate reorganization.”

TrizecHahn is in the last stages of completing two large mixed-use projects, Hollywood & Highland in Los Angeles and Paseo Colorado in Pasadena. The firm has said it is selling off most of its portfolio to focus on office buildings.

Maguire Partners Chief Executive Robert Maguire said the firms had “actually never had an agreement” and vowed to complete a deal with another potential suitor by the end of the year. Maguire is selling a stake in the company he founded to raise $100 million to expand his role at the Playa Vista project near Marina del Rey.

He said the failed talks with TrizecHahn won’t jeopardize his efforts to raise money for Playa Vista, which is in the early stages of development. Maguire said he is talking with an institutional investor interested in teaming with him to help expand his ownership of the commercial sections of Playa Vista.

Maguire said the turmoil in financial markets triggered by last week’s terrorist attacks and the slowing economy won’t reduce the firm’s portfolio value or hamper deals.

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Bloomberg Business News was used in compiling this report.