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A&B ACQUIRES FOUR ACRES OF
PRIME INVESTMENT PROPERTY FOR $19.3 MIL.
Kaheka Daiei Site Has Potential for Future Redevelopment
HONOLULU – February 1, 2005 – A&B Properties, Inc., the real estate
subsidiary of Alexander & Baldwin, Inc. (NASDAQ: ALEX), announced today
that it has completed the acquisition, for $19.3 million, of the fee
simple interest in a four-acre income-producing parcel in
one of Honolulu’s prime commercial areas.
The property is located just two blocks from the Ala Moana Shopping
Center, less than a half-mile from the entrance to Waikiki, and less
than two miles from downtown Honolulu. The 176,000 square-foot parcel,
acquired in a private transaction from a Japanese seller, is leased to a
Hawaii subsidiary of Daiei Japan, which operates a 105,000 square-foot
Daiei Department Store on the site. The property is zoned BMX-3, which
allows for a variety of retail, commercial and residential uses.
“This was a rare opportunity to acquire a large, fee simple parcel in
Honolulu’s urban core,” said Allen Doane, president and CEO of Alexander
& Baldwin, Inc., “and which is in close proximity to major retail,
office and commercial establishments and surrounded by high density
residential uses.
This investment continues our strategy of acquiring well-located
properties at favorable prices that possess significant value
potential,” continued Doane. “Importantly, the property is fully
entitled for a broad range of commercial and residential uses, including
high-rise residential use, thereby creating some very attractive
redevelopment options over the longer term.”
The property is being acquired from C.E.C. Hawaii, Inc. with
tax-deferred Section 1031 sales proceeds. The entire property is ground
leased to Daiei (USA), Inc., which operates a grocer/ general
merchandise store emphasizing Asian food and retail products. A portion
of the property is sub-leased to a variety of small retail and fast-food
operators.
A&B Properties has an income portfolio of commercial properties in
Hawaii and on the U. S. mainland consisting of more than 5.1 million
square feet of leasable retail, office, and industrial space. The
majority of A&B’s recent acquisition and investment activity has been
focused on Hawaii where, since 1999, A&B Properties has acquired or
invested in 23 properties outside its core land holdings on Maui and
Kauai. These transactions represent a total capital commitment of more
than $450 million.
A&B Properties, Inc. www.abprop.com
is the real estate subsidiary of Alexander & Baldwin, Inc., a
diversified corporation headquartered in Honolulu. A&B owns 91,000 acres
in Hawaii, making it Hawaii’s fourth largest private landowner. A&B’s
major lines of business are ocean transportation (Matson Navigation
Company, Inc.); real estate (A&B Properties, Inc.); and food products
(Hawaiian Commercial & Sugar Company, Kauai Coffee Company, Inc.).
Additional information about A&B may be found at its web site: <www.alexanderbaldwin.com>.
Statements in this press
release that are not historical facts are “forward-looking statements,”
within the meaning of the Private Securities Litigation Reform Act of
1995, 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, overall economic conditions, failure to
satisfy the closing conditions set forth in the definitive agreement and
other risks associated generally with acquisitions and developments.
These forward-looking statements are not guarantees of future
performance. This release should be read in conjunction with our Annual
Report on Form 10-K and our other filings with the SEC through the date
of this release, which identify important factors that could affect the
forward-looking statements in this release.
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