A&B Buys Mililani Shopping Center; A&B Properties Acquires Oahu Retail Center From Morita Company
HONOLULU--(BUSINESS WIRE)--June 13, 2002--A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc. (Nasdaq:ALEX), has entered into an agreement to acquire the Mililani Shopping Center for $30.2 million from the Morita Company. The 180,300 square-foot Center, which is fully occupied, is situated on 12.8 acres of fee simple land within the 15,000-home master-planned community of Mililani in Central Oahu.
"The Mililani Shopping Center is an excellent performing property and a good investment for A&B," said A&B President and Chief Executive Officer Allen Doane. "We are pleased to have acquired this property in a private transaction, and this suburban retail property will diversify A&B's portfolio. This acquisition will also enable us to utilize a substantial amount of Section 1031 exchange proceeds generated from prior property sales. Mililani Shopping Center will be the eighteenth commercial and development property acquired by A&B in the last three years, representing a total capital investment of over $280 million. Fourteen of those 18 investments will have been in Hawaii, reflecting our continuing belief in the strength of Hawaii's future."
"The Mililani Shopping Center is located in one of Oahu's fastest growing residential communities," said Michael G. Wright, A&B Properties Vice President, who is responsible for the company's real property acquisitions. "It is a seasoned neighborhood center with historically high occupancy rates and a good mix of national and local tenants. The demographics of the surrounding neighborhood are very favorable, and we also like the fact that the property possesses expansion and redevelopment opportunities."
The Mililani Shopping Center was developed in two increments: office (1969) and retail (1976). The Center has 52 tenants, located on two parcels separated by Kipapa Drive, including Ross Dress For Less, 24 Hour Fitness, Blockbuster Video, Foodland, Starbucks, Wahiawa General Hospital, and three of Hawaii's largest top banking institutions.
Contrary to an article published today in the Honolulu Advertiser, Morita Company purchased the Mililani Shopping Center in 1999 for $31.2 million, not the $23 million reported.
Upon the closing of this investment, scheduled for early next week, A&B Properties' real estate portfolio will include 27 commercial properties in Hawaii and 17 on the U. S. Mainland. Additional information may be found at its web site: www.abprop.com.
A&B Properties, Inc. is the property development and management subsidiary of Alexander & Baldwin, Inc., a diversified corporation headquartered in Honolulu. A&B owns 91,000 acres in Hawaii, making it Hawaii's fifth largest private landowner. 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.
Statements in this press release that are not historical facts are "forward-looking" statements that involve a number of risks and uncertainties such as those described on page 19 of the Company's Annual Report on Form 10-K, which is incorporated in the Company's 2001 annual report to shareholders. These factors could cause actual results to differ materially from those projected in the statements.
Alexander & Baldwin, Inc.
Meredith J. Ching, 808/525-6669