A&B Properties to Acquire Savannah Logistics Center
Links Matson Integrated Logistics' Prowess with Industrial Real Estate Expertise
HONOLULU--(BUSINESS WIRE)--Nov. 12, 2007--A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc. (NASDAQ:ALEX), has entered into a contract to purchase from Oakmont Industrial Group a one million square-foot state of the art industrial complex currently under construction in Savannah, Georgia, extending the company's reach to a burgeoning eastern port, further linking A&B's real estate and logistics businesses. The nearly $50 million transaction for Savannah Logistics Center will be funded primarily using proceeds from recent and pending real estate sales, including various tax-deferred sources, and is expected to be concluded in the first quarter of 2008, once construction is complete.
"This acquisition underscores our concerted strategy of diving deeper into our customers' value and supply chain," said A&B Chairman and CEO Allen Doane. "Including this acquisition, over three-fourths of A&B Properties' industrial holdings will be aligned with the considerable logistics expertise and market penetration resident in our transportation businesses, Matson Navigation and Matson Integrated Logistics. In addition, we believe Savannah has tremendous potential as a key East Coast port, with strong government support and a growing distribution hub that will augment our investment returns."
Over the last five years, the Port of Savannah has become the fifth busiest container port in the United States and the second largest by volume on the East Coast, having grown its container throughput by an average of 15 percent per year, in lockstep with the dramatic rise of U.S. trade with China. The Georgia Port Authority, which owns and operates the port, forecasts that total container volume will double by 2015, to four million TEUs.
Norbert Buelsing, A&B Properties' executive vice president in charge of the company's income portfolio, added, "We see a very good opportunity that marries our development and property management expertise in the industrial arena with the logistics acumen of our sister company, Matson Integrated Logistics. This combination of real estate and logistics expertise will create a unique value proposition for tenants and customers alike."
With the acquisition, A&B's leased income/investment portfolio will consist of approximately 7.6 million square feet of retail, office and industrial space located in Hawaii (25 properties) and throughout the mainland United States (23 properties).
About Alexander & Baldwin: Alexander & Baldwin, Inc., 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. A&B Properties is Hawaii's fourth largest private landowner; its diverse pipeline of projects is located on some of the 89,000 acres it owns in Hawaii, or on lands more recently acquired or being developed in joint ventures with third parties, including projects on Oahu, Maui, Kauai, the Big Island and in California. Additional information may be found at web site: www.abprop.com.
The seller, Oakmont Industrial Group, is a fully integrated developer of industrial real estate headquartered in Atlanta, Georgia. Additional information may be found at web site: http://www.oakmontre.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.
CONTACT: A&B Properties, Inc.
Meredith J. Ching, 808-525-6669
SOURCE: A&B Properties, Inc.