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Favorable Sales Price Realized, Proceeds to be Used to Further Company's Reinvestment Strategy
HONOLULU, Dec 01, 2008 (BUSINESS WIRE) -- A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc. (NYSE:AXB) ("Company"), announced today that it has sold Venture Oaks, a 100,000 square-foot, five story office building in Sacramento, California, to KBS City Gate Plaza, LLC.
"We achieved a favorable sales price for the property, which reflected the economic value of a recent lease extension for a major tenant, as well as the underlying appreciation of real estate values in Sacramento during our ownership. This combination - long-term appreciation and active property management - has consistently optimized the value we achieve in our portfolio dispositions," said Norbert M. Buelsing, president of A&B Properties. "And as part of our core investment strategy we plan to put the proceeds from this sale to work, on a tax-deferred basis, in replacement properties that have a higher potential for appreciation."
Venture Oaks is located in the Gateway Center suburban office district of South Natomas, Sacramento. The property's primary tenant, occupying 87% of the building, is the State Compensation Insurance Fund.
After this sale, A&B Properties' commercial property/investment portfolio will comprise 7.5 million square feet of retail, office and industrial space located in Hawaii and eight mainland states, including two office buildings in Sacramento. 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 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," 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: Alexander & Baldwin, Inc.
A&B Properties, Inc.
For media inquiries:
Meredith J. Ching, 808-525-6669
mching@abinc.com
or
For investor relations inquiries:
Kevin L. Halloran, 808-525-8422
khalloran@abinc.com