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Douglas Emmett, Inc. Announces Acquisition of Largest Office Project in Hawaii

^{Published on 2010-06-29 14:20:27 - Market Wire}
 

SANTA MONICA, Calif.--([ BUSINESS WIRE ])--Douglas Emmett, Inc. (NYSE: DEI), a real estate investment trust (REIT), announced that it has acquired Bishop Square, an office project containing approximately 960,000 square feet located in Honolulu, Hawaii for a contract price of $232 million, or $242 per square-foot. This transaction increases the Companya™s Class aAa market share to 36% from 15% in the Honolulu Central Business District (CBD).

"It has been a primary focus of our Hawaii acquisition strategy since we purchased our first property in Honolulu in 2004, so we are extremely pleased that we have been successful in acquiring this premier property a" a property that has not traded since it was originally built."

Bishop Square is the largest office project in the state of Hawaii and is located in the heart of Honolulua™s CBD. It is comprised of two Class aAa office towers, an above-ground parking structure and a one-acre park, which serves as the central meeting area for downtown Honolulu. The property is currently 91% leased to approximately 200 tenants with an average tenant size of roughly 4,600 square feet.

Commenting on the acquisition, Jordan Kaplan, President and CEO of Douglas Emmett said, aBishop Square has been widely viewed as the best business address in Honolulua™s CBD ever since it was first developed.aMr. Kaplan continued, aIt has been a primary focus of our Hawaii acquisition strategy since we purchased our first property in Honolulu in 2004, so we are extremely pleased that we have been successful in acquiring this premier property a" a property that has not traded since it was originally built.a

Due to the size of the transaction, Bishop Square was acquired entirely by the Company itself utilizing its available cash on hand and its revolving credit facility, rather than through the Companya™s fund. Douglas Emmett intends to obtain term mortgage financing in the near future both to fund this acquisition and as part of its strategy to refinance its 2012 commercial loan maturities by the end of this year to take advantage of favorable interest rates.

Douglas Emmetta™s total commercial portfolio now consists of 57 office properties totaling approximately 14.3 million rentable square feet. The Company also owns 2,868 apartment units in Los Angeles and Honolulu.

About Douglas Emmett, Inc.

Douglas Emmett, Inc. (NYSE: DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in premier submarkets in Southern California and Hawaii. The Companya™s properties are concentrated in ten submarkets a" Brentwood, Olympic Corridor, Century City, Santa Monica, Beverly Hills, Westwood, Sherman Oaks/Encino, Warner Center/Woodland Hills, Burbank and Honolulu. The Company focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. The Company maintains a website at [ www.douglasemmett.com ].

Safe Harbor Statement

Except for the historical facts, the statements in this press release regarding Douglas Emmetta™s business activities are forward-looking statements based on the beliefs of, assumptions made by, and information currently available to us about known and unknown risks, trends, uncertainties and factors that are beyond our control or ability to predict. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. As a result, our actual future results can be expected to differ from our expectations, and those differences may be material. Accordingly, investors should use caution in relying on forward-looking statements to anticipate future results or trends. For a discussion of some of the risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see aRisk Factorsa in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission.