A&B Properties Buys Waikiki Property, Plans Residential Development; Investment in Long-Vacant Parcel Will Help Revitalize Waikiki

November 5, 2001

HONOLULU--(BUSINESS WIRE)--Nov. 5, 2001--A&B Properties, Inc., the real estate development subsidiary of Alexander & Baldwin, Inc. (A&B) (Nasdaq:ALEX), has purchased a prime piece of Waikiki real estate on which it plans to develop a multi-story residential tower, announced A&B President & CEO W. Allen Doane. The property -- at the entrance to Waikiki -- comprises the majority of one city block bounded by Ala Wai Boulevard and Kuhio Avenue. The fee simple parcel totals 1.63 acres (71,000 square-feet) and was purchased from DAI Investments, Inc. for approximately $3.6 million, in a transaction which closed November 1, 2001.

"A&B continues to invest in Hawaii's future," said Doane. "The development of this property will help revitalize an important Honolulu community -- Waikiki -- which is home to more than 20,000 residents, in addition to being a key visitor destination. We are confident that, notwithstanding recent events, the Hawaii economy has long-term strength, and we expect to continue to grow our real estate business with good local investments. This purchase is our lucky 13th in Hawaii over the past three years."

A&B Properties CEO Stanley M. Kuriyama added, "This is one of the last remaining undeveloped parcels of fee simple land in Waikiki, and it provides A&B Properties with the opportunity to develop the first fee simple, high rise condominium project in Waikiki in a decade. Its location is highly desirable -- at the gateway to Waikiki, with access to two main thoroughfares -- and with opportunities for excellent views, particularly in the makai direction, where most of the units will have breathtaking, unobstructed views of the ocean and Fort DeRussy park."

A&B Properties Vice President Michael G. Wright, responsible for real property acquisitions, explains A&B's strategy. "There has been increasing investment in the infrastructure, resort and retail components of Waikiki in recent years, but no new fee simple condominiums. We see an opportunity to create a superior residential project, in an excellent location." Wright added, "A&B Properties hopes to provide what we believe to be lacking in Waikiki residential units -- namely, good size living areas, ample parking, and spacious grounds." He also noted that 13,500 square feet of the property, with 90 feet of frontage along Kuhio Avenue, has "Mixed-Use" zoning that allows for certain commercial uses as well. "Our planning for the property is, however, only in the very conceptual stages," added Wright, "and we will be spending the next few months designing a project that makes the most sense for the area and for the market."

A&B Properties currently is developing two other projects on Oahu: the Kai Lani residential project in the Ko Olina Resort, being developed in a joint venture partnership with Armstrong Builders; and the second increment of Mill Town Business Center, a light industrial subdivision in Central Oahu. On Kauai, A&B Properties is developing the 1,000-acre Kukui'Ula master planned resort community in the Poipu area and the Port Allen Marina Center, a commercial facility at Port Allen harbor. On Maui, A&B Properties is developing the Fairway Shops, a retail center in Kaanapali; The Summit, a single-family resort project in Kaanapali; and other commercial projects in Kahului. On the Big Island, A&B Properties is a joint venture partner in Kamuela Associates, LLC, which is developing a residential project in Waimea, called Holoholo Ku.

A&B Properties has a portfolio of commercial properties in Hawaii and on the U. S. Mainland consisting of more than 5.4 million square feet of leasable retail, office, and industrial space. A&B owns 91,000 acres in Hawaii, making it Hawaii's fifth largest private landowner.

A&B Properties, Inc. is the property development and management subsidiary of Alexander & Baldwin, Inc., a diversified corporation headquartered in Honolulu. Additional information may be found at its web site: www.abprop.com.

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.

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CONTACT: Alexander & Baldwin, Inc.
Meredith J. Ching, 808/525-6669