A&B expresses interest to acquire Victoria Ward

By Andrew Gomes
Advertiser Staff Writer

Alexander & Baldwin Inc. has expressed an interest in acquiring Honolulu retail complex owner Victoria Ward Ltd., according to an A&B executive.

Norb Buelsing, executive vice president of A&B real estate subsidiary A&B Properties Inc., said yesterday that officials with the closely held Victoria Ward are considering the proposal along with others.

Buelsing and other A&B officials did not disclose specifics of their proposal. Local real estate analysts say several proposals, some involving partnerships, have been made to Victoria Ward.

Victoria Ward's president and chief executive officer, Mitch D'Olier, who previously has declined to comment on whether the company may be for sale, declined to comment again yesterday.

A&B could be a front-runner in any consideration of a proposal, given its familiarity with Hawai'i real estate, interest in buying local shopping centers and financial ability to make such an acquisition.

Still, analysts note that Victoria Ward may not accept any offer and that it could have solicited prospective buyers for other reasons, including valuing the company or finding a development partner to help with a planned $150 million to $200 million redevelopment of Ward Warehouse that would include a Nordstrom department store opening in 2005.

The value of Victoria Ward holdings — a mix of retail, industrial, office and possible future residential properties on 65 acres in Kaka'ako — was estimated about two years ago at $300 million.

About 35 shareholders, including members of the local Hustace family, own Victoria Ward, which is one of the state's largest private landowners.

A&B is a publicly traded company that also owns Matson Navigation Co., Kauai Coffee Co. and Hawaiian Commercial & Sugar Co.

The company made an unsuccessful bid to buy Ala Moana Center in partnership with Simon Property Group, the nation's largest shopping mall operator, for about $800 million in 1999.

In the last two years, A&B has spent about $200 million buying and developing property mostly in Hawai'i. Among recent purchases were the Kaneohe Bay Shopping Center and a small mall in Arizona.

Last year, the company reported $110.6 million in profits, largely due to a $77.8 million after-tax gain from sales of stock in Pacific Century Financial Corp. and BancWest Corp., the respective parent companies of Bank of Hawaii and First Hawaiian Bank.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.