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A&B PROPERTIES SELLS HONOLULU PROPERTY FOR $45 MILLION
Capitalizes on Strong Commercial Market in Urban Core
HONOLULU – (September 14, 2007) – A&B Properties, Inc., the real estate
subsidiary of Alexander & Baldwin, Inc. (NASDAQ: ALEX), has sold its fee
simple interest in a four-acre commercial parcel in Honolulu, close to
Ala Moana Shopping Center, for $45.5 million. The buyer and previous
ground lease holder, Don Quijote (USA), closed the transaction today,
September 14, and will continue to operate its U.S. flagship store at
the location.
A&B Properties CEO Stanley M. Kuriyama said, “Don Quijote’s unsolicited
offer allowed us to capture the property’s embedded intrinsic value well
ahead of our original schedule. We purchased this property in 2005 with
the intent to redevelop it upon the ground lease termination in 2018.
However, this transaction both allows A&B to realize the financial
benefits from its investment, and Don Quijote to achieve its strategic
and operating goals, on an accelerated timeline.”
Kuriyama added, “This transaction validates the continued strength of
commercial markets in Hawaii. We expect to reinvest the proceeds from
this sale into other commercial investments, in line with our strategy
to grow our income portfolio through the use of tax-deferred I.R.S. 1031
exchanges.”
The 176,000 square-foot parcel is centrally located within one of
Honolulu’s strongest urban cores, the Kapiolani corridor. Steve Sombrero
of ChaneyBrooks, who represented Don Quijote in the transaction, said,
“This acquisition is an important building block in establishing Don
Quijote’s presence in Hawaii, providing them with the opportunity to
begin to invest additional capital in the flagship store.”
Sombrero added, “Don Quijote has been pleased with the reception by the
Hawaii community, and this investment will permit Don Quijote to
significantly enhance the unique retail experience it brings to the
State. This property is a wonderful location for Don Quijote, surrounded
by numerous high-rise apartment buildings and close to many of Don
Quijote’s customers.”
In addition to its income portfolio, which comprises more than 5.3
million square feet of retail, office and industrial space in Hawaii and
on the Mainland, A&B Properties is one of Hawaii’s most active real
estate development companies, with development projects on-going on all
of the major Hawaiian Islands. With ownership of nearly 90,000 acres in
Hawaii, A&B is the State’s fourth largest private land owner. In
addition to its diverse pipeline of commercial and residential projects
on its historical landholdings, since 1999 the company has invested in
25 Hawaii properties outside of its historic holdings, representing a
capital commitment in excess of $670 million. Additional information
about the company may be found at
www.abprop.com.
Alexander & Baldwin, Inc. (“A&B”), headquartered in Honolulu, Hawaii is
engaged in ocean transportation and logistics services, through its
subsidiaries, Matson Navigation Company, Inc. and Matson Integrated
Logistics, Inc.; in real estate, through A&B Properties, Inc.; and in
food products, through Hawaiian Commercial & Sugar Company and 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. 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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