A&B Properties to Develop Retail Center in So. California; Centre Pointe Marketplace is Fourth Investment with Intertex; Fifth Investment in Valencia
HONOLULU--(BUSINESS WIRE)--April 21, 2005--A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc. (NASDAQ:ALEX), has entered into an agreement to partner with Intertex Properties on a commercial development project in Valencia, Calif. The joint venture, Centre Pointe Marketplace LLC, will develop the Centre Pointe Marketplace, a 101,700 square-foot shopping center on a 10.2-acre parcel within the 240-acre Centre Pointe Business Park.
The site is adjacent to Wal-Mart and Sam's Club stores, which currently are under construction, and is located at the intersection of two of the primary thoroughfares in Valencia: Soledad Canyon Road and Golden Valley Road. The center is planned to have three main buildings and two pad sites; construction is expected to begin in the fourth quarter of 2005 and take 12 months to complete. Total cost of the project is estimated at $25 million.
The Centre Pointe Marketplace will be A&B's fourth real estate investment with Intertex and its fifth in the Santa Clarita Valley - one of California's fastest growing regions. A&B's other projects with Intertex -- a Valencia-based developer and general contractor -- are the Westridge Executive Plaza, a 63,000 square-foot office building completed in 2003 and currently 95% occupied, and two projects still in the planning stages - Crossroads Plaza, a 62,000 square-foot retail center, and the Rye Canyon Plaza, an 85,000 square-foot office building.
"We have every confidence that this newest project, with its great location, will be a success," said A&B Properties CEO Stanley M. Kuriyama. "Intertex is a proven and reputable developer in Valencia, and Valencia is an economically thriving region. While our investment and development focus will continue to remain on Hawaii, these Valencia projects will serve to diversify our portfolio and grow our bottom line with solid investment opportunities."
A&B owns 91,000 acres in Hawaii, making it Hawaii's fourth largest private landowner. Besides focusing on the development and management of these core real estate holdings, in recent years A&B has embarked on a strategy of expanding beyond its historical Hawaii landholdings.
"We continue to identify exceptional investment and development opportunities in dynamic markets, like Valencia," said A&B Properties Senior Vice President Michael G. Wright, who is responsible for implementing A&B's strategy for growth through real estate acquisitions and investments. "We also look for solid local partners with proven success and knowledge of the local marketplace, like Intertex. This is a formula for success we'd like to duplicate in other growing communities," Wright added.
The land was purchased April 21, 2005 by the joint venture from Spirit Properties, a California developer. Valencia is a master-planned community within the Santa Clarity Valley, roughly 30 miles north of Los Angeles.
A&B Properties is one of Hawaii's most active real estate companies; 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 Hawaii properties outside its core land holdings on Maui and Kauai. These transactions represent a total capital commitment approaching $500 million. A&B also has a leased portfolio comprising more than 5.1 million square feet of leasable retail, office and industrial space on the Mainland and in Hawaii. Additional information may be found at its web site: www.abprop.com .
A&B Properties, Inc. 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: Alexander & Baldwin, Inc.
Meredith J. Ching, 808-525-6669 firstname.lastname@example.org
SOURCE: A&B Properties, Inc.