A&B Properties Selected for ''Once in a Lifetime'' Honolulu Development Opportunity; Kaka'ako Makai Provides Open Space, Improves Shoreline Access, Creates Retail & Residential Cores
HONOLULU--(BUSINESS WIRE)--Sept. 15, 2005--A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc. (Nasdaq:ALEX), was selected by the Hawaii Community Development Authority to develop the 36.5-acre Kaka'ako Waterfront project that spans a half-mile of shoreline in Central Honolulu. A&B President and CEO Allen Doane called the project "a once in a lifetime opportunity" and expressed appreciation for the Authority's confidence in A&B's ability to achieve HCDA's vision for this important site.
The property is located on the ocean (makai) side of one of Honolulu's major thoroughfares, Ala Moana Boulevard, adjacent to Kewalo Basin, the recently completed University of Hawaii John A. Burns School of Medicine and Ala Moana Beach Park. It is approximately two miles from downtown Honolulu and one mile from the Ala Moana Shopping Center, and has unobstructed ocean and Diamond Head views.
"Our goal is to bring HCDA's vision to life. In doing so, we will create an exciting and vibrant waterfront community, mixing residential, retail and public uses," said Doane. "We will be creating a community that will embody all of the elements of 'live, work and play' while, at the same time, creating a Hawaiian sense of place, based on local values, history and our combined heritage."
Doane added, "A&B has been a prominent member of this community for more than 135 years, and our pursuit of this major undertaking again demonstrates our long-term commitment to the State. We have a tremendous development team at A&B; HCDA is an excellent organization with which to work; and we look forward to the opportunity to partner with the State and the community in creating a legacy at Kaka'ako."
Total development costs are preliminarily estimated at $650-$700 million, but this cost will change as plans are finalized, and when construction estimates and bids are secured. All of A&B's plans are preliminary at this point. A&B and HCDA will now begin negotiations over a period of up to four months of the final concepts and financing of the project. These discussions should lead to a letter of intent. Following the signing of that letter, the documentation of the project will be finalized over a period of up to two months. It is estimated that planning and construction plan approvals will take up to two years. Development of both the commercial and residential components is likely to occur in phases.
Stan Kuriyama, CEO of A&B Properties, said, "Our plan is to create a new waterfront community with homes for local residents and places for residents and visitors to shop, dine and recreate. We stayed away from the grandiose and the extravagant, and instead designed a project that is scaled to our Hawaiian style of living, and which reflects the importance of the ocean in our residents' work, play and daily activities such as shopping and dining. Important goals were to retain an essential element of Kaka'ako's cultural and historic identity, to integrate this development with the nearby new medical school and research facilities, and to create a welcoming environment for local residents and visitors alike. Our business plan calls for sharing the economic benefits of the project with the State, effectively creating both a financial and development partnership with HCDA and the community."
Mike Wright, senior vice president of A&B Properties who lead A&B's efforts on this project, explained further, "The project will include a retail village on ten waterfront acres, with over 200,000 square feet of retail, dining and entertainment space. There are approximately 950 residential units planned on an adjacent 7.5 acres, in three mid-rise condominium buildings.
"Equally important, however, are the public-oriented facilities including the ten acres along the shoreline in open space, enhanced by an arched pedestrian bridge over Kewalo Basin, linking Kaka'ako by foot to Ala Moana Beach Park. Near the oceanfront will be a unique amphitheatre, which we hope will become Hawaii's premier venue for hula and other Hawaiian performing arts. The Kewalo Basin -- currently home to fishing and recreational vessels -- will benefit from improved marine facilities and management. It also will benefit from additional landscaping, a landmark harborfront structure representative of ships' sails, and a variety of ocean-oriented restaurants and shops."
Kuriyama said, "We know that Oahu residents are looking to A&B Properties, as a kama'aina real estate developer, to anticipate and resolve important issues involving shoreline and ocean access, affordable housing, traffic flow and parking, and enhancement to Kewalo Basin, which must remain a working harbor. We've committed to an affordable housing component, planned for parking for nearly three thousand vehicles, and understand the importance of maintaining complete public access to the ocean. We are committed to making this project work for all of the people of Honolulu."
As master developer, A&B Properties retained a project team of highly credentialed experts in economic forecasting, housing and affordable housing, retail design, traffic and architectural design, Hawaiian culture, environmental and marina management. Some of the key consultants were the Group 70 architectural firm, headed by Francis Oda, planning and financial consultant Sanford Murata, native Hawaiian cultural experts Peter Apo and Vicky Holt Takamine, and retail developer Madison Marquette.
A&B Properties, Inc. (www.abprop.com) is the real estate subsidiary of Alexander & Baldwin, Inc., a diversified corporation headquartered in Honolulu. A&B owns 90,000 acres in Hawaii, making it the state's fourth largest private landowner. A&B Properties 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.
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 properties outside its core land holdings on Maui and Kauai. A&B development projects in Hawaii are currently ongoing on Oahu, Maui, Kauai and the Big Island.
A&B's major lines of business are ocean transportation and intermodal services (Matson Navigation Company, Inc.; Matson Integrated Logistics, 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 Meredith J. Ching, 808-525-6669 firstname.lastname@example.org SOURCE: A&B Properties, Inc.