Highwoods to Develop Third Building for MetLife’s Global Technology Campus in Raleigh Area Cary’s Mixed-Use Weston PUD
May 22 2017 - 6:30AM
219,000 Square Feet, 100% Pre-Leased $63
Million Total Investment
Highwoods Properties, Inc. (NYSE:HIW) announces
that it has been selected by
MetLife, Inc.
(NYSE:MET), a Fortune 40 company and a global provider of life
insurance, annuities, employee benefits and asset management, to
develop a third office building for its global technology campus in
Cary’s highly-desirable, mixed-use Weston PUD (planned unit
development). Highwoods delivered the first two 100% pre-leased
buildings for MetLife in 2015. With the addition of the third
building, Highwoods total investment in this 655,000 square foot
campus is expected to be approximately $172 million.
The newest 219,000 square foot building will
seek LEED-certification and will include structured parking. It
will be situated on the remaining 13.5 acres of a 40-acre
Highwoods-owned site fronting the 520-acre Lake Crabtree, which is
adjacent to I-40 and the Raleigh-Durham International Airport.
“MetLife is a long-term, highly regarded
Highwoods customer, and we appreciate their continued confidence in
our team and brand,” said Ed Fritsch, president and chief executive
officer of Highwoods Properties. “We are very pleased MetLife has
entrusted us to develop this third building in Weston and has
committed to invest in the buildout of their innovative workspace.
This expansion represents entirely new market absorption. The
success and growth of MetLife in Weston since we delivered their
initial buildings in 2015 illustrates the strong
technology-oriented employment pool that continues to attract
companies to the Triangle area.”
“Our expanded Global Technology Campus furthers
our ability to drive the digital initiatives that are at the heart
of our commitment to earning the right to be the customer’s first
choice,” said Marty Lippert, Executive Vice President and Head of
Global Technology & Operations, MetLife. “By bringing together
a wide array of technologists, we are creating a culture of digital
innovation that’s already delivering results.”
Highwoods expects to invest $63 million for this
100% pre-leased build-to-suit, including the value of
Highwoods-owned land. Construction is scheduled to commence this
summer, with completion in the first quarter of 2019 and
stabilization in the first half of 2021.
Weston is an approximate 1,000-acre mixed-use
planned unit development of which Highwoods is the declarant. The
Company currently owns 11 in-service properties encompassing 1.3
million square feet in Weston that are, on average, 99%
occupied.
With the addition of this project, Highwoods
development pipeline has grown to 2.0 million square feet
representing an expected investment of approximately $612 million
that is 85% pre-leased on a dollar-weighted basis. MetLife has a
one-time right to cancel development of the third building within
approximately the next 60 days if shell building costs are expected
to significantly exceed currently budgeted costs.
A brief presentation outlining this transaction
can be accessed through the link below or on the Investors section
of the Company’s website at www.highwoods.com.
HIW Metlife III Development Presentation
About Highwoods Highwoods
Properties, Inc., headquartered in Raleigh, is a publicly-traded
(NYSE:HIW) real estate investment trust (“REIT”) and a member of
the S&P MidCap 400 Index. The Company is a fully-integrated
office REIT that owns, develops, acquires, leases and manages
properties primarily in the best business districts (BBDs) of
Atlanta, Greensboro, Memphis, Nashville, Orlando, Pittsburgh,
Raleigh, Richmond and Tampa.
Disclosure Regarding Forward-Looking
StatementsCertain matters discussed in this press release
are forward-looking statements within the meaning of the federal
securities laws, such as the expected cost, timing and impact of
Highwoods development activity. These statements are distinguished
by use of the words "will", "expect", "intend" and words of similar
meaning. Although Highwoods believes the expectations reflected in
such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that its expectations will be
achieved.
Factors that could cause actual results to
differ materially from Highwoods current expectations include,
among others, the following: development activity by competitors in
existing markets could result in excessive supply of properties
relative to customer demand; development, acquisition,
reinvestment, disposition or joint venture projects may not be
completed as quickly or on as favorable terms as anticipated;
Highwoods may not be able to lease or re-lease second generation
space quickly or on as favorable terms as old leases; Highwoods
markets may suffer declines in economic growth; Highwoods may not
be able to lease newly constructed buildings as quickly or on as
favorable terms as originally anticipated; unanticipated increases
in interest rates could increase debt service costs; unanticipated
increases in operating expenses could negatively impact Highwoods
net operating income; Highwoods may not be able to meet its
liquidity requirements or obtain capital on favorable terms to fund
its working capital needs and growth initiatives or to repay or
refinance outstanding debt upon maturity; Highwoods could lose key
executive officers; and others detailed in Highwoods 2016 Annual
Report on Form 10-K and subsequent SEC reports.
About MetLifeMetLife, Inc.
(NYSE:MET), through its subsidiaries and affiliates ("MetLife"), is
one of the largest life insurance companies in the world. Founded
in 1868, MetLife is a global provider of life insurance, annuities,
employee benefits and asset management. Serving approximately 100
million customers, MetLife has operations in nearly 50 countries
and holds leading market positions in the United States, Japan,
Latin America, Asia, Europe and the Middle East. For more
information, visit www.metlife.com.
Contact:
Brendan Maiorana
Senior Vice President, Finance and Investor Relations
Highwoods Properties
919-431-1529
Contact for MetLife
Tony Varnon
Vice President, Global Communications
MetLife
212-578-8188
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