HONOLULU--(BUSINESS
WIRE)--July 21, 2003--Alexander & Baldwin, Inc. (Nasdaq:ALEX) today
announced that a wholly-owned A&B affiliate, South Maui Development
LLC, has entered into a contract for the acquisition of the Hawaii real
estate assets of certain subsidiaries of the Shinwa Golf Group, at a
purchase price of approximately $135 million, subject to certain
adjustments at closing. These assets include three golf courses and 270
acres of fully zoned undeveloped land at the renowned Wailea Resort on
Maui, and two golf courses and an undeveloped hotel site at the Kauai
Lagoons Resort. Closing of the transaction is scheduled for early
October.
Wailea Resort has long been recognized as one of Hawaii's premier
destination resorts and as one of the finest residential resort
communities in the world. Originally master-planned in the early 1970s
by A&B subsidiary Wailea Development Company, the resort now
encompasses over 1,500 acres along 1.5 miles of Maui's southern
coastline. It includes three golf courses, six hotels with 2,500 rooms,
450 single-family home sites, 1,300 condominium apartments and the
156,000 square-foot Shops at Wailea retail center. In 1989, A&B sold
its remaining interest in Wailea (consisting of 927 acres, including two
golf courses) to Shinwa. Shinwa continued the world-class development of
the Wailea Resort, subsequently building in Wailea two award-winning
golf courses, a premier clubhouse and two residential subdivisions, and
acquired the Kauai Lagoons Resort property.
A&B President & CEO Allen Doane said, "These are
exceptional properties, which present excellent near- and long-term
opportunities. A&B already has a strong presence on Maui and
possesses the local development expertise and on-island resources that
make this acquisition a particularly good strategic fit. It is an
obvious reflection of our continuing strong belief in Hawaii's future
and real estate values."
In the past four years alone, A&B has announced 16 acquisitions
of Hawaii real estate, with a total investment of nearly $300 million.
A&B development projects are ongoing in Kahului and Kaanapali on
Maui; in Waikiki, Central Oahu, and at the Ko Olina Resort in Leeward
Oahu; at Poipu and Port Allen on Kauai; and in Kamuela on the Big
Island.
A&B will be completing the acquisition with an affiliate of
GolfBC Group, a Vancouver-based company headed by Caleb Chan. "Mr.
Chan is a successful and well-respected real estate developer and golf
course owner in British Columbia. He also is a recognized
philanthropist, and we are fortunate to have such a community-minded
individual with whom to work," Doane concluded.
"My family and I have been coming to Maui regularly for many
years now, and previously owned a home in Wailea for a number of
years," said Chan. "I have a strong commitment to the
long-term excellence of Wailea so, in that regard, it is also very
pleasing to be able to work alongside a strong and experienced ally such
as A&B, which has a similar long-term commitment to quality, as well
as to community."
Chan has developed a golf investment and management business that is
defining a higher standard of quality and consistency among premier golf
destinations in British Columbia. "We look forward with great
pleasure to working with the fine people, and world class facilities, at
the Wailea and Kauai golf courses, and to realizing together the
benefits that will come with combining our experience and shared passion
for golf," said Chan.
A&B's current landholdings include a total of over 90,000 acres
in Hawaii, making it Hawaii's fifth largest private landowner, and an
income property portfolio comprising 5 million square feet of leasable
space in 18 Mainland and 23 Hawaii office, industrial and retail
properties. A&B's major lines of business are ocean transportation
(Matson Navigation Company, Inc.); property development and management
(A&B Properties, Inc.); and food products (Hawaiian Commercial &
Sugar Company, Kauai Coffee Company). Additional information about
A&B may be found at its web site: www.alexanderbaldwin.com.
The GolfBC Group is a golf and resort management and investment
company based in British Columbia, Canada, and is the owner of eight
championship golf courses in British Columbia. Additional information
about GolfBC can be found at its web site: www.golfbc.com.
Statements in this press release that are not historical facts are
"forward-looking" statements that involve a number of risks
and uncertainties that could cause actual results to differ materially
from those contemplated by the relevant forward-looking statement.
Factors that could cause actual results to differ materially from those
contemplated in the statements include, without limitation, failure to
satisfy the closing conditions set forth in the definitive agreement and
other risks associated generally with acquisitions.
CONTACT:
A&B
Meredith J. Ching, 808-525-6669
mching@abinc.com
or
GolfBC
Donald Lee, 604-681-8700 ext. 212
dlee@golfbc.com
SOURCE: Alexander & Baldwin, Inc.
