Alexander & Baldwin To Acquire Properties Worth $373 Mln In Hawaii

(RTTNews) - Alexander & Baldwin, Inc. (ALEX) Wednesday announced agreement to acquire a portfolio of commercial properties in Hawaii from Kaneohe Ranch and the Harold K. L. Castle Foundation for $260 million and $113 million, respectively. The combined transaction is currently valued at around $373 million.

The portfolio includes 386,000 square feet of prime retail and light industrial space in the heart of Kailua, and over 50 acres improved with retail and other commercial centers that are ground leased to third-parties in Kailua and other parts of Windward Oahu and urban Honolulu.

The retail portion of the portfolio comprises the majority of the grocery-anchored centers in Kailua, and includes the only Whole Foods store in Windward Oahu.

"This acquisition dramatically accelerates our strategy of migrating our Mainland portfolio to Hawaii, diversifies our holdings with a major investment in the Windward side of Oahu, and improves the quality of earnings from our overall commercial portfolio, " said Stanley Kuriyama, A&B chairman and CEO.

The acquisition will also solidify A&B's position as the second largest retail owner in Hawaii.

A&B will fund the purchase with proceeds from the planned sale of several commercial properties it owns on the Mainland, along with other tax-deferred 1031 proceeds. The transaction is anticipated to close in late December, subject to the satisfaction of normal closing conditions.