THE WOODLANDS, Texas,
Dec. 30, 2019 /PRNewswire/
-- The Howard Hughes Corporation® (NYSE: HHC) announced
today the acquisition of two Class AAA office towers, warehouse
space and developable land in The
Woodlands®, Texas, from
Occidental (NYSE: OXY), providing The Howard Hughes Corporation
with highly sought-after, premium office space that will enable The
Howard Hughes Corporation to meet ongoing demand in the market. The
acquisition increases The Howard Hughes Corporation's office
portfolio within the award-winning master planned community (MPC)
by approximately 50%, and reinforces The Howard Hughes
Corporation's standing as the community's steward and largest
stakeholder.
The $565 million transaction also
includes the acquisition of Occidental's Century Park campus in the
West Houston Energy Corridor—a 63-acre, 1.3-million-square-foot
campus with 17 office buildings—which The Howard Hughes Corporation
will immediately remarket, in line with its recently announced
commitment to sell non-core properties and to focus resources into
the growth of its core business of MPCs.
In The Woodlands, The Howard
Hughes Corporation's acquisition includes the two Class AAA towers
rebranded as The Woodlands Towers at The Waterway, which total
approximately 1.4 million square feet of office space, and a
125,000-square-foot warehouse. The acquisition also includes 9.3
acres of prime, developable land located in The Woodlands Town
Center® bordering The Woodlands Waterway® and fronting Interstate
45 North, providing the opportunity for meaningful future
commercial development in the heart of The Woodlands.
"The Howard Hughes Corporation is defined by a steadfast
commitment to our master planned communities, which across the
country are consistently ranked among the best places to live, work
and discover, allowing leading corporations to attract and retain
today's top talent," said Paul
Layne, Chief Executive Officer of The Howard Hughes
Corporation. "This acquisition of Class AAA office space in The
Woodlands Towers at The Waterway, as well as the additional
property in The Woodlands, further
expands our existing portfolio in this market where our
2.5-million-square-feet office portfolio is currently 94% leased,
allowing us to respond to the growing need for premium office space
as companies are looking to relocate and expand within The Woodlands."
Occidental will continue its presence at The Woodlands Towers at
The Waterway, and will lease back 100% of the larger, approximately
808,000-square-foot tower at 1201 Lake Robbins Drive and 100% of
the warehouse for 13 years.
"The sale of office complexes in the Houston Energy Corridor and
The Woodlands is part of our plan
to divest non-core assets and continue to improve the strength of
our balance sheet," said Occidental President and CEO Vicki Hollub. "It was important to us, and many
of our employees, to maintain a presence in The Woodlands and we are pleased to have
signed a 13-year lease to remain in the community."
The Howard Hughes Corporation will also be growing its own
presence in The Woodlands,
relocating its corporate headquarters into the approximately
595,000-square-foot tower at 9950 Woodloch Forest Drive. "We
unequivocally believe that The
Woodlands is the greatest destination in Texas for any company seeking to relocate or
grow, and we look forward to contributing to the continued
expansion of the business community as we relocate our headquarters
from Dallas to The Woodlands
Towers at The Waterway," said Mr. Layne.
"These iconic towers have long been a beacon at the entry to The
Woodlands Town Center and The Howard Hughes Corporation is
extremely proud to bring them into our portfolio," said
Jim Carman, President, Houston Region for The Howard Hughes
Corporation. "The Woodlands offers
a vibrant lifestyle, a strong workforce, highly-acclaimed schools,
and unparalleled amenities including hiking trails, parks, and open
spaces while focusing on health and wellness."
The Woodlands, Bridgeland® and
The Woodlands Hills® are the award-winning MPCs in Texas which help comprise the core of The
Howard Hughes Corporation's portfolio. Located in Cypress, Bridgeland is the #1 top-selling MPC
in the Greater Houston area as
ranked by Metrostudy, and #11 in the nation as ranked by
RCLCO. The Woodlands Hills, located 13 miles north of
The Woodlands in Conroe and Willis,
Texas, is one of the newest MPCs in the Greater Houston area and is the first bespoke
MPC of The Howard Hughes Corporation, built on the company's
guiding principles of expert placemaking.
Occidental was represented in the sale by Brandon Clarke, Executive Vice President,
Jared Chua, Senior Vice President,
and Steve Hesse, Vice Chairman, for
CBRE.
About The Woodlands®
The
Woodlands is a 28,000-acre master planned community located
27 miles north of downtown Houston. Throughout its 45-year history,
The Woodlands has led the way
among master planned communities that practice environmental
preservation. It is home to over 117,000 people, and nearly 68,000
people work in the community. The
Woodlands is one of the top-selling master planned
communities in Texas and the
nation. The Woodlands was named
"Trailblazer of the Year" in 2018 by the Greater Houston Builders
Association. The community was also consecutively named
"Humanitarian of the Year" in 2017 and 2016 and "Master Planned
Community of the Year" in 2015 by the Greater Houston Builders
Association. For more information, visit www.thewoodlands.com.
For additional details, find us on Facebook, Twitter, Instagram and
LinkedIn.
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 cities and 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.
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.
Media Contacts:
The Howard Hughes Corporation
Cristina Carlson
Vice President, Corporate Communications & Public Relations
646-822-6910
cristina.carlson@howardhughes.com
Lorrie Parise
Manager, PR & Community Relations, The Woodlands
281-719-6344
lorrie.parise@howardhughes.com
Kim Phillips
Vice President, Marketing, Houston
Region
281-719-6174
kim.phillips@howardhughes.com
HHC Investor Relations
David R. O'Reilly
Chief Financial Officer
214-741-7744
david.oreilly@howardhughes.com
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SOURCE The Howard Hughes Corporation