Posted on: Friday, February 18, 2005
Company buying 188 acres at Campbell Industrial
Advertiser Staff
A Massachusetts-based real estate investment trust said yesterday it has reached an agreement to buy 188 acres at Campbell Industrial Park for $115.5 million.
Advertiser library photo HRPT estimates that the current annual net operating income from the property will be $8.7 million. The acquisition will boost HRPT's industrial land holdings on O'ahu to 412 acres, making it one of the largest industrial land owners in the state. In 2003, the company bought 224 acres of industrial property between Honolulu Harbor and the airport from the Damon Estate for $480 million.
The Damon land acquisition was the largest ever for HRPT, a publicly traded real estate investment trust that owned primarily Mainland office buildings worth $4.7 billion at the end of last year.
The Campbell Industrial Park purchase, from the Estate of James Campbell and its affiliates, is expected to be completed between June and December.
Real estate investment trusts are companies, usually publicly traded, that manage a portfolio of real estate to earn profits for investors. Because the trusts must distribute most of their earnings, they tend to pay high yields of 5 percent to 10 percent or more.
The property to be acquired by HRPT Properties Trust includes 41 parcels that are 95 percent leased to 60 tenants for an average remaining lease term of 15 years. The tenants include affiliates of Tesoro Corp., and AES Corp.
An affiliate of AES Corp. is one of the tenants leasing parcels at Campbell Industrial Park that are being sold to HRPT Properties Trust, a real estate investment trust based in Massachusetts.
