THE WOODLANDS, Texas,
March 18, 2020 /PRNewswire/ -- The
Howard Hughes Corporation® (NYSE: HHC) announced today the sale of
the 208,000-square-foot building in The Woodlands® that is home to
MD Anderson The Woodlands at a price of $115
million. With net proceeds of $64
million, the sale marks a gain of $52
million on a cash basis and is expected to result in a gain
of approximately $39 million on a
GAAP basis. In addition, this sale was done on a tax-free basis for
federal income tax purposes as part of a reverse 1031 exchange
involving the company's December purchase from Occidental of two
Class AAA office towers, recently rebranded as The Woodlands Towers
at The Waterway.
"The sale of the build-to-suit MD Anderson cancer care facility
in The Woodlands creates
meaningful value for our shareholders and exemplifies our continued
commitment to the sale of our non-core assets and our
transformation plan," said Paul
Layne, CEO of The Howard Hughes Corporation. "This
transaction brings us another step closer to our goal of monetizing
our non-core assets and recycling the expected $600 million of net cash proceeds into potential
share repurchases and into development within our core master
planned communities. Further, it exemplifies the type of value
creation opportunities that Howard
Hughes can execute in challenging times as this development
was launched in 2017 when Houston's economy was under pressure from a
sharp decline in oil prices."
As part of The Howard Hughes Corporation's recently announced
plan, the Company is selling approximately $2 billion in non-core assets to be reinvested in
its core master planned communities that include The Woodlands, The Woodlands Hills® and
Bridgeland®, all in the Greater Houston,
Texas area; Summerlin®, Nevada; Ward Village®, Hawaiʻi; and
Downtown Columbia,
MD.
MD Anderson The Woodlands will remain at 100 Fellowship Drive,
allowing patients to have convenient, comfortable access to
world-class care in their community, close to where they live, work
and play, and continuing to provide its unparalleled level of
cancer care to those in need in The
Woodlands and the North
Houston region.
About The Woodlands®
The
Woodlands is a 28,000-acre master planned community located
27 miles north of downtown Houston. Throughout its 46-year history,
The Woodlands has led the way
among master planned communities that practice environmental
preservation. It is home to 118,000 people, and over 68,000 people
work in the community. The
Woodlands is one of the most successful 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 named "Humanitarian of the
Year" in 2019, 2017, 2016 and 2007 and "Master Planned Community of
the Year" in 2015, 2010 and 2007 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.
Media Contacts
The Howard Hughes Corporation
Cristina Carlson, 646-822-6910
VP, Corporate Communications and Public Relations
cristina.carlson@howardhughes.com
The Howard Hughes Corporation Investor
Relations
David O'Reilly, 214-741-7744
Chief Financial Officer
david.o'reilly@howardhughes.com
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SOURCE The Howard Hughes Corporation