A&B Properties Buys Kona's Lanihau Center; Planned Expansion Will Triple Its Size
HONOLULU--(BUSINESS WIRE)--Sept. 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.
CONTACT: A&B Properties, Inc. Meredith J. Ching, 808-525-6669 firstname.lastname@example.org SOURCE: A&B Properties, Inc.