Howard Hughes Corp sells MD Anderson The Woodlands Medical Building
THE WOODLANDS, TX. (March 18, 2020) — 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.
Source: Howard Hughes Corporation