NEW YORK, June 24, 2019 /PRNewswire/ -- The Howard
Hughes Corporation® (NYSE: HHC) announced today it has
secured a $250 million term loan for
the redevelopment of the Seaport District. The five-year loan is
being provided by a consortium of leading financial institutions
administered by Civitas Alternative Investments. The term loan has
an initial rate of 6.10% for its first two years, followed by
London Interbank Offered Rate (LIBOR) + 4.10% with a LIBOR cap of
2.30%. The interest-only loan is non-recourse subject to
typical recourse carve outs and prepayable after one year. The loan
is secured by only a portion of HHC's Seaport District holdings,
including Pier 17, the Tin Building, and various buildings
throughout the Historic District that are subject to the existing
ground lease. The Tin Building may be removed from the collateral
after construction is complete without penalty.
"This financing further validates our vision for what we are
creating at the Seaport District," said David R. Weinreb, CEO of The Howard Hughes
Corporation. "Consistent with our broader capital markets strategy,
we are pleased to have secured this financing that enhances
liquidity and provides us with financial and operational
flexibility."
"We are thrilled that Civitas could provide financing to
continue the dynamic vision The Howard Hughes Corporation has for
the Seaport District," said Daniel J.
Healy, CEO of Civitas Capital Group.
About The Howard Hughes Corporation®
The
Howard Hughes Corporation owns, manages and develops commercial,
residential and mixed-use real estate throughout the U.S. Its
award-winning assets include the country's preeminent portfolio of
master planned communities, as well as operating properties and
development opportunities including the Seaport District in
New York; Columbia, Maryland; The Woodlands®, The Woodlands
Hills, and Bridgeland® in the Greater Houston, Texas area;
Summerlin®, Las Vegas;
and Ward
Village® in Honolulu, Hawaiʻi. The Howard Hughes
Corporation's portfolio is strategically positioned to meet and
accelerate development based on market demand, resulting in one of
the strongest real estate platforms in the country. Dedicated to
innovative placemaking, the company is recognized for its ongoing
commitment to design excellence and to the cultural life of its
communities. The Howard Hughes Corporation is traded on the New
York Stock Exchange as HHC. For additional information visit
www.howardhughes.com.
About Seaport District NYC
The Seaport District is
New York's original commercial
hub, located on the East River in Lower Manhattan with unparalleled
views of the Brooklyn Bridge, the Statue of Liberty and the city
skyline. An essential part of the city for over 300 years, the
re-envisioned Seaport District will continue to function as a
community anchor and "port of discovery" for the rapidly growing
population of Lower Manhattan. The Howard Hughes Corporation® is
leveraging the Seaport District's history as the birthplace of
innovation, as it transforms a district spanning several city
blocks, creating approximately 450,000 square feet of dynamic
culinary, fashion, entertainment and cultural experiences.
Highlights include Pier 17®, one of New York City's newest iconic entertainment
destinations, with a 1.5-acre rooftop that serves as a year-round
community amenity and cultural and event space. The Rooftop at Pier
17 transforms seasonally from a Winterland experience, complete
with the city's first open-air rooftop ice skating rink, to an
outdoor performance venue which was recently named "Best New
Concert Venue" by Pollstar. In addition to hosting the annual
Summer Concert Series, The Rooftop at Pier 17 offers an array of
seasonal bar and food options, and the standalone R17 restaurant
which evolves with the seasons. The Pier Village, a collection of
waterfront restaurants by culinary powerhouses on the first two
floors of Pier 17, recently welcomed its first restaurant with the
opening of Jean-Georges
Vongerichten's seafood restaurant, The Fulton. Openings from David Chang of the Momofuku Group, Helene Henderson of Malibu Farm, and
Andrew Carmellini are to come. Pier
17 is home to ESPN's new live broadcast studios, which opened in
April 2018.
The Seaport District features the only U.S. location of
Carla Sozzani's pioneering
experiential concept store, 10 Corso Como, as well as the only
permanent location of SJP by Sarah Jessica
Parker in New York. The
district is home to the first iPic Theaters located in Manhattan, which is the premier cinema
operator's highest grossing location. The Seaport will also feature
a 50,000-square-foot food hall by Jean-Georges in the restored Tin
Building that is currently under construction.
The Seaport will be the
official home of the 43rd annual Macy's
July 4th fireworks, offering a special viewing and dining event at The
Fulton, the recently opened
seafood restaurant at Pier 17 by Jean-Georges Vongerichten.
For additional information, visit SeaportDistrict.NYC.
About Civitas Capital Group
Civitas Capital Group is a
Dallas, Texas-based alternative
asset firm that provides a range of products and services for
institutional investors, family offices, and qualified individuals.
The firm, which has more than $1.4
billion of assets under management in more than 50
investments, focuses on compelling, niche investment strategies in
U.S. real estate and lodging. Civitas' executive team has over 100
years combined investment experience. Driven by relentless
creativity, Civitas digs deeper to find opportunities others miss.
For more information, please visit civitascapital.com.
Safe Harbor Statement
Statements made in this press
release that are not historical facts, including statements
accompanied by words such as "will," "believe," "expect,"
"enables," "realize", "plan," "intend," "assume," "transform" and
other words of similar expression, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on management's expectations,
estimates, assumptions, and projections as of the date of this
release and are not guarantees of future performance. Actual
results may differ materially from those expressed or implied in
these statements. Factors that could cause actual results to differ
materially are set forth as risk factors in The Howard Hughes
Corporation's filings with the Securities and Exchange Commission,
including its Quarterly and Annual Reports. The Howard Hughes
Corporation cautions you not to place undue reliance on the
forward-looking statements contained in this release. The Howard
Hughes Corporation does not undertake any obligation to publicly
update or revise any forward-looking statements to reflect future
events, information or circumstances that arise after the date of
this release.
Contacts:
The Howard Hughes Corporation
Cristina Carlson, Vice President,
Corporate Communications and Public Relations
cristina.carlson@howardhughes.com
646-822-6910
For Investor Relations
David
O'Reilly
Chief Financial Officer
david.o'reilly@howardhughes.com
214-741-7744
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SOURCE The Howard Hughes Corporation