A&B Acquires Four Acres of Prime Investment Property for $19.3 Mil.; Kaheka Daiei Site Has Potential for Future Redevelopment
HONOLULU--(BUSINESS WIRE)--Feb. 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.
CONTACT: Alexander & Baldwin, Inc.
Meredith J. Ching, 808-525-6669
SOURCE: Alexander & Baldwin, Inc.