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.
The Howard Hughes Corporation
Cristina Carlson, 646-822-6910
VP, Corporate Communications and Public Relations
The Howard Hughes Corporation Investor Relations
David O'Reilly, 214-741-7744
Chief Financial Officer
SOURCE The Howard Hughes Corporation