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A&B PROPERTIES BUYS KONA’S LANIHAU
CENTER; PLANNED EXPANSION WILL TRIPLE ITS SIZE
HONOLULU – (September 19, 2005) – A&B Properties, Inc., the real estate
subsidiary of Alexander & Baldwin, Inc. (NASDAQ: ALEX), has purchased
the popular 88,000 square-foot Lanihau shopping center, on a 9.7-acre
fee simple parcel, in Kailua-Kona on the Big Island of Hawaii, for an
undisclosed price, and has acquired the development rights to an
adjacent 22-acre vacant parcel, with the right to purchase the parcel in
fee. The Lanihau shopping center is 100% leased, and anchored by a Longs
Drug Store and a Sack ’n Save grocery store. A&B plans to develop an
additional 238,000 square-feet of office and retail space on the 22-acre
parcel, at an estimated all-in project cost of $85 million, which would
create Kailua-Kona’s largest and most centrally located mixed-use
commercial project. The adjacent 22-acre parcel has all necessary
entitlements and project design is well underway. Wendell Brooks of PM
Realty Group is coordinating the leasing of the project.
“We are pleased to have this opportunity to expand A&B’s real estate
presence on the Big Island,” said Allen Doane, President & CEO of
Alexander & Baldwin, Inc. “The Big Island, and the Kona Coast in
particular, has enjoyed a tremendous resurgence in economic and real
estate activity, and this major project in the heart of Kailua-Kona town
will allow us to be an integral part of Kona’s future. This investment
represents A&B’s 24th investment in Hawaii outside of our core
landholdings since 1999, and reflects our continuing confidence in
Hawaii’s future, not only in today’s strong real estate environment, but
over the long run as well.”
“It was a significant accomplishment to acquire both the existing
Lanihau Center and the development rights to the adjacent land on a fee
simple basis,” added Stan Kuriyama, A&B Properties CEO, “allowing us to
move forward with plans for a major expansion of the center. Our vision
is to enhance the heart of Kona town with a vibrant and exciting
collection of new dining and retail venues not currently available in
West Hawaii.”
The Lanihau properties are situated in the
heart of Kailua-Kona, bounded by key transportation arteries – the Queen
Kaahumanu and Kuakini highways – and by Palani Road and Henry Street.
There are several major retail developments in the immediate vicinity
that, together with Lanihau, make the area Kailua-Kona’s regional retail
center.
The development plans for the 22-acre parcel include two office
buildings totaling approximately 91,000 square-feet, and a retail center
comprising about 147,000 square feet of retail and restaurant space. The
combined areas will have ample parking of over 1,700 stalls. It is A&B’s
intent to develop the property with a joint venture partner.
“The existing Lanihau Center is one of the busiest in the region,
already a favorite retail destination for residents and visitors,” said
Mike Wright, A&B Properties Senior Vice President for Acquisitions and
Investments. “The strategic acquisition of the adjacent parcel will
enable A&B to build upon the Center’s established presence, and provide
additional retail choices, as well as much-needed office space and
restaurants, to this fast-growing Kailua-Kona region. We will create a
beautiful, high quality project, but with a distinctively Hawaiian sense
of place.”
A&B owns 91,000 acres in Hawaii, making it the state’s fourth largest
private landowner. The majority of A&B’s recent acquisition and
investment activity has been focused on Hawaii, where various A&B
development projects are ongoing on Oahu, Maui, Kauai and the Big
Island. Currently on the Big Island, A&B is developing the 137-unit Ka
Milo project, an upscale single-family and town house project located in
the Mauna Lani Resort, in a joint venture with Brookfield Homes. In
addition, A&B was recently selected by the Hawaii Community Development
Authority for the development of the 36.5-acre Kaka´ako Waterfront
project in Central Honolulu. The project will consist of commercial
space, residential units and public amenities spanning a half-mile of
shoreline in the heart of Honolulu.
A&B also has an income portfolio of
commercial properties in Hawaii and on the U. S. mainland consisting of
more than 5.2 million square feet of leasable retail, office and
industrial space.
A&B Properties, Inc. (www.abprop.com)
is the real estate subsidiary of Alexander & Baldwin, Inc., a
diversified corporation headquartered in Honolulu. 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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