Demand for Quality Properties Holds Strong, Strengthening Yen Bolsters Pricing
HONOLULU--(BUSINESS WIRE)--Oct. 27, 2009-- A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc. (NYSE:ALEX) (“A&B”), announced today that it has completed the sale of the Pacific Guardian Tower (“PGT”), a 130,600 square-foot office building in Honolulu, Hawaii to Maruito USA, Inc., the U.S. subsidiary of Japan-based Maruito Group, a financial services company.
“The sale of Pacific Guardian Tower is another clear signal of the continued demand for quality, stable income properties in Hawaii. Further, the favorable pricing we realized is a reflection of our efforts over the past several years to transform PGT into one of urban Honolulu’s premier office buildings,” said Norbert M. Buelsing, president of A&B Properties. “Under our ownership, average net rent at PGT increased 34 percent and occupancy increased from 74 percent to 95 percent presently, and a number of upgrades were made to improve the building’s aesthetic appeal. We expect to redeploy proceeds from the sale, on a tax-deferred basis, into other commercial real estate investments with strong growth potential.”
“PGT is a top-quality office property in an excellent location, making this a very sound long-term investment for Maruito USA,” said Steve Sombrero, president and owner of NAI ChaneyBrooks and broker for Maruito USA’s acquisition of PGT. “And, with the increasing strength of the Japanese yen, we believe this is an opportune time to make real estate investments in Hawaii.”
PGT is located at the corner of Kapiolani Boulevard and Keeaumoku Street, across from a primary entrance to the Ala Moana Shopping Center in the Kapiolani office district, a submarket of Honolulu. The 18-story office building was built in 1989 and purchased in 2001 by A&B.
With the sale of PGT, A&B Properties’ commercial property/investment portfolio consists of 8.4 million square feet of retail, office and industrial space located in Hawaii and eight mainland states. Additional information about A&B Properties, Inc. may be found at its web site: www.abprop.com.
About Alexander & Baldwin: A&B is headquartered in Honolulu, Hawaii and is engaged in ocean transportation and logistics services through its subsidiaries, Matson Navigation Company, Inc., Matson Integrated Logistics, Inc. and Matson Global Distribution Services; in real estate through A&B Properties, Inc.; and in agribusiness 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.
About Maruito USA: Maruito USA is the U.S. subsidiary of Japan-based, Maruito Group, which owns and manages a vast portfolio of commercial properties primarily in Japan. It is also a major shareholder of Acom, one of Japan’s largest consumer loan companies, which is a subsidiary of the Mitsubishi UFJ Financial Group.
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. 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.
Source: A&B Properties, Inc.
A&B Properties, Inc.
For media inquiries:
Meredith J. Ching, 808-525-6669
For investor relations inquiries:
Kevin L. Halloran, 808-525-8422