Highwoods Properties Awarded 241,000 Square Foot Build-to-Suit Lease in Memphis
RALEIGH, NC -- (Marketwire) -- 03/25/13 -- Highwoods Properties,
Inc. (NYSE: HIW) today announced that it has signed a long-term
build-to-suit lease with International Paper (NYSE: IP), a global
leader in packaging and paper products. Highwoods will develop a
241,000 square foot, nine-story Class A office building with
structured parking in the Poplar Avenue corridor submarket of
Memphis, that city's best business district ("BBD"). This new
building will be directly across the street from International Place,
International Paper's world headquarters and main campus.
Highwoods expects to invest approximately $56.1 million for this
development project, which includes land Highwoods has acquired
specifically for this development. The building is 100% pre-leased by
International Paper. Construction is expected to commence in the
fourth quarter of 2013, with completion expected by the second
quarter of 2015.
Ed Fritsch, president and chief executive officer of Highwoods
Properties, commented, "We are pleased to have been selected by
International Paper to accommodate their substantive expansion needs.
International Paper has been a long-term Highwoods customer and we
are grateful for their continued confidence in our development and
management abilities. We congratulate everyone at International Paper
on the continued success of their business model."
"After 25 years, it has always been our preference to stay and grow
in Memphis," said International Paper's Senior Vice President Tom
Kadien. "In addition to the support from the City and County
government, Highwoods has been a supportive partner throughout the
Highwoods currently owns 1.3 million square feet in Memphis' BBD, the
Poplar corridor submarket. Highwoods total Memphis portfolio
comprises 2.0 million square feet of office space that was 86.5%
occupied at year-end 2012.
About International Paper:
International Paper (NYSE: IP) is a
global leader in packaging and paper with manufacturing operations in
North America, Europe, Latin America, Russia, Asia and North Africa.
Its businesses include industrial and consumer packaging and uncoated
papers, complemented by xpedx, the company's North American
distribution company. Headquartered in Memphis, Tenn., the company
employs approximately 70,000 people and is strategically located in
more than 24 countries serving customers worldwide. International
Paper net sales for 2012 were $28 billion. For more information about
International Paper, its products and stewardship efforts, visit
About Highwoods Properties
Highwoods Properties, headquartered in
Raleigh, North Carolina, is a publicly traded (NYSE: HIW) real estate
investment trust ("REIT") and a member of the S&P MidCap 400 Index.
The Company is a fully integrated, self-administered REIT that
provides leasing, management, development, construction and other
customer-related services for its properties and for third parties.
At December 31, 2012, Highwoods owned or had an interest in 333
in-service office, industrial and retail properties encompassing
approximately 34.6 million square feet and owned 649 acres of
development land. The Company's properties and development land are
located in Florida, Georgia, Missouri, North Carolina, Pennsylvania,
South Carolina, Tennessee and Virginia. For more information about
Highwoods Properties, please visit our website at www.highwoods.com.
Certain matters discussed in this press release, such as the expected
cost, timing and impact of our development activity, are
forward-looking statements within the meaning of the federal
securities laws. These statements are distinguished by use of the
words "will", "expect", "intend" and words of similar meaning.
Although Highwoods believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it
can give no assurance that its expectations will be achieved.
Factors that could cause actual results to differ materially from
Highwoods' current expectations include, among others, the following:
the financial condition of our customers could deteriorate;
development activity by our competitors in our existing markets could
result in excessive supply of properties relative to customer demand;
development, acquisition, reinvestment, disposition or joint venture
projects may not be completed as quickly or on as favorable terms as
anticipated; we may not be able to lease or re-lease second
generation space quickly or on as favorable terms as old leases; our
markets may suffer declines in economic growth; we may not be able to
lease our newly constructed buildings as quickly or on as favorable
terms as originally anticipated; unanticipated increases in interest
rates could increase our debt service costs; unanticipated increases
in operating expenses could negatively impact our NOI; we may not be
able to meet our liquidity requirements or obtain capital on
favorable terms to fund our working capital needs and growth
initiatives or to repay or refinance outstanding debt upon maturity;
the Company could lose key executive officers; and others detailed in
the Company's 2012 Annual Report on Form 10-K and subsequent SEC
Vice President, Investor Relations
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