THE HOWARD HUGHES CORPORATION® EXTENDS JDM PARTNERS' OPTION PERIOD TO REACQUIRE STAKE IN DOUGLAS RANCH
HOUSTON, April 18, 2022 /PRNewswire/ -- The Howard Hughes Corporation® (NYSE: HHC) today announced the extension of JDM Partners' option period to reacquire a stake in Douglas Ranch—HHC's recently launched large-scale master planned community (MPC) in Phoenix's West Valley, which was acquired from Jerry Colangelo's JDM Partners ("JDM") and El Dorado Holdings ("El Dorado") in October for $600 million.
Under the original agreement, JDM escrowed $33.8 million as a non-refundable deposit to secure a six-month option period expiring April 16, 2022. This option period allowed JDM Partners to reacquire up to 50% of Douglas Ranch, excluding Trillium—the MPC's first 3,000-acre village—where JDM and El Dorado are already 50/50 joint-venture partners with HHC.
The Company has entered into an amendment with JDM to extend and modify the original option period. JDM now has until June 17, 2022, to exercise its first option and close on the purchase of up to 50% of Douglas Ranch for $270.5 million. JDM must close on at least 9.24% or $50 million of Douglas Ranch on or before this date or forfeit their current $33.8 million escrow deposit. Concurrent with exercising the first option, JDM will purchase a second option to acquire up to 50% of Douglas Ranch, less what was acquired upon exercising the first option. As compensation for the second option, JDM will pay HHC a non-refundable $10 million option fee that will expire on August 18, 2022, with no rights to repurchase thereafter.
"We are developing Douglas Ranch to be a market-leading community that will help meet the tremendous need for housing in one of America's fastest growing regions," said David O'Reilly, Chief Executive Officer of The Howard Hughes Corporation. "With Jerry Colangelo and his team at JDM, we are taking a long-term view of sustainable development that integrates innovative technology as we thoughtfully master plan this new community in Phoenix's West Valley."
About The Howard Hughes Corporation®
The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S. Its award-winning assets include the country's preeminent portfolio of master planned cities and communities, as well as operating properties and development opportunities including: the Seaport in New York City; Downtown Columbia®, Maryland; The Woodlands®, The Woodlands Hills®, and Bridgeland® in the Greater Houston, Texas area; Summerlin® in Las Vegas, Nevada; Ward Village® in Honolulu, Hawai'i; and Douglas Ranch in Phoenix, Arizona. The Howard Hughes Corporation's portfolio is strategically positioned to meet and accelerate development based on market demand, resulting in one of the strongest real estate platforms in the country. Dedicated to innovative placemaking, the company is recognized for its ongoing commitment to design excellence and to the cultural life of its communities. The Howard Hughes Corporation is traded on the New York Stock Exchange as HHC. For additional information visit www.howardhughes.com.
Safe Harbor Statement
Statements made in this press release that are not historical facts, including statements accompanied by words such as "will," "believe," "expect," "enables," "realize," "plan," "intend," "assume," "transform" and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's expectations, estimates, assumptions, and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially are set forth as risk factors in The Howard Hughes Corporation's filings with the Securities and Exchange Commission, including its Quarterly and Annual Reports. The Howard Hughes Corporation cautions you not to place undue reliance on the forward-looking statements contained in this release. The Howard Hughes Corporation does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
The Howard Hughes Corporation
Cristina Carlson, 646-822-6910
Senior Vice President, Head of Corporate Communications
For HHC Investor Relations
John Saxon, 281-929-7808
Chief of Staff
Carlos Olea, 703-309-6720
Chief Financial Officer
SOURCE The Howard Hughes Corporation