HONOLULU--(BUSINESS WIRE)--Aug. 9, 2004--A&B Properties, Inc., the real estate development and management subsidiary of Alexander & Baldwin, Inc. (A&B) (Nasdaq:ALEX), will develop a Class "A" 62,000 square-foot retail/office complex on a 6.5-acre parcel in Valencia, Calif., in a joint venture with Intertex General Contractors, Inc. Construction is expected to begin in the first quarter of 2005, at an estimated cost of $11 million, with completion projected for the 2nd quarter of 2006.

The project, Crossroads Center, will be A&B's third real estate investment in Valencia and its second in partnership with Intertex. The land was purchased last week by the joint venture, Crossroads Plaza Development Partners LLC, from Newhall Land and Farming Company, the master developer of Valencia, a master planned community roughly 30 miles north of Los Angeles. It lies within the Santa Clarity Valley region, which is one of the fastest growing residential and business regions in Southern California. The project is within the master planned business park known as the Valencia Commerce Center.

"We've been very pleased with our investments in Valencia, and we are confident this project will be as successful as the previous two," said A&B Properties CEO Stanley M. Kuriyama. "Valencia is a thriving region with well-performing markets, and this property will be a good addition to our Hawaii and Mainland portfolio. We are also pleased to be partnering again with Intertex, a proven and reputable developer."

"Valencia's rapidly growing residential and commercial base has created exceptional investment and development opportunities," 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. "This particular project is in an excellent location, and will provide quality retail opportunities in a significantly underserved market area. We've created an exciting development concept that should be well received in the marketplace, and we look forward to beginning construction next year," Wright added.

A&B owns 90,000 acres in Hawaii, making it the State's fourth largest private landowner, and owns an income property portfolio comprising over 5 million square feet of leasable space in Mainland and Hawaii office, industrial and retail properties. 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 landholdings in Hawaii.

Alexander & Baldwin, Inc. (A&B), headquartered in Honolulu, is engaged in real property development and management through its subsidiary A&B Properties, Inc.; in transportation through its subsidiaries Matson Navigation Company, Inc. and Matson Integrated Logistics, 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.

Statements in this press release that are not historical facts are "forward-looking" statements 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, failure to satisfy the closing conditions set forth in the definitive agreement and other risks associated generally with acquisitions.

CONTACT:
A&B Properties, Inc.
Meredith J. Ching, 808-525-6669
mching@abinc.com

SOURCE: A&B Properties, Inc.