JCPENNEY ANNOUNCES SALE OF HOME OFFICE CAMPUS FOR $353M
January 03 2017 - 4:15PM
PLANO, Texas
- (Jan. 3, 2017) - J. C. Penney Company, Inc.
(NYSE: JCP) announced today that it has completed the sale of its
Home Office building and surrounding 45 acres of land in Plano,
Texas to Dreien Opportunity Partners, LLC, general partner of Silos
Opportunity Partners, LP, for a gross sale price of $353 million
before closing and transaction costs. The Company previously
announced that upon the transfer of ownership, JCPenney would lease
back approximately 65 percent of the building, leaving the
remaining square footage available for new tenants. The building
lease expense would be offset by a reduction in maintenance costs,
property taxes and interest expense as a result of paying down debt
with proceeds from the transaction.
"Since we began exploring the sale
of our Home Office, we have been quite pleased by the level of
interest in the building. Our team reviewed numerous offers and
decided that it was most advantageous to select Dreien Opportunity
Partners, whose leadership recognizes the building's long-term
potential and has demonstrated tremendous support of the Company as
we maintain our Home Office operations within the booming Legacy
corridor," said Marvin R. Ellison, chairman and chief executive
officer for JCPenney. "This transaction also represents a
significant financial milestone for the Company, as proceeds from
the sale give us the opportunity to reduce outstanding debt and
make improvements to our workspace, creating a modern and efficient
environment that fosters productivity and seamless
collaboration."
Prominently located near the
intersection of Dallas North Tollway and State Highway 121,
JCPenney has occupied the three-story 1.8 million-square-foot
office building as its global headquarters since 1992. CBRE Capital
Markets represented the Company in this transaction.
Media Relations:
(972) 431-3400 or jcpnews@jcp.com and follow us at
@jcpnews on Twitter.
Investor Relations:
(972) 431-5500 or
jcpinvestorrelations@jcpenney.com
About JCPenney:
J. C. Penney Company, Inc.
(NYSE:JCP), one of the nation's largest apparel and home
furnishings retailers, is on a mission to ensure every customer's
shopping experience is worth her time, money and effort. Whether
shopping jcp.com or visiting one of over 1,000 store locations
across the United States and Puerto Rico, she will discover a broad
assortment of products from a leading portfolio of private,
exclusive and national brands. Supporting this value proposition is
the warrior spirit of over 100,000 JCPenney associates worldwide,
who are focused on the Company's three strategic priorities of
strengthening private brands, becoming a world-class omnichannel
retailer and increasing revenue per customer. For additional
information, please visit jcp.com.
Forward-Looking
Statements
This release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as
"expect" and similar expressions identify forward-looking
statements, which include, but are not limited to, statements
regarding sales, gross margin, selling, general and administrative
expenses, earnings and cash flows. Forward-looking statements
are based only on the Company's current assumptions and views of
future events and financial performance. They are subject to known
and unknown risks and uncertainties, many of which are outside of
the Company's control that may cause the Company's actual results
to be materially different from planned or expected results. Those
risks and uncertainties include, but are not limited to, general
economic conditions, including inflation, recession, unemployment
levels, consumer confidence and spending patterns, credit
availability and debt levels, changes in store traffic trends, the
cost of goods, more stringent or costly payment terms and/or the
decision by a significant number of vendors not to sell us
merchandise on a timely basis or at all, trade restrictions, the
ability to monetize non-core assets on acceptable terms, the
ability to implement our strategic plan including our omnichannel
initiatives, customer acceptance of our strategies, our ability to
attract, motivate and retain key executives and other associates,
the impact of cost reduction initiatives, our ability to generate
or maintain liquidity, implementation of new systems and platforms
including EMV chip technology, changes in tariff, freight and
shipping rates, changes in the cost of fuel and other energy and
transportation costs, disruptions and congestion at ports through
which we import goods, increases in wage and benefit costs,
competition and retail industry consolidations, interest rate
fluctuations, dollar and other currency valuations, the impact of
weather conditions, risks associated with war, an act of terrorism
or pandemic, the ability of the federal government to fund and
conduct its operations, a systems failure and/or security breach
that results in the theft, transfer or unauthorized disclosure of
customer, employee or Company information, legal and regulatory
proceedings and the Company's ability to access the debt or equity
markets on favorable terms or at all. There can be no
assurances that the Company will achieve expected results, and
actual results may be materially less than expectations.
Please refer to the Company's most recent Form 10-Q for a
further discussion of risks and uncertainties. Investors should
take such risks into account and should not rely on forward-looking
statements when making investment decisions. Any forward-looking
statement made by us in this press release is based only on
information currently available to us and speaks only as of the
date on which it is made. We do not undertake to update these
forward-looking statements as of any future date.
###
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: J. C. Penney Company, Inc. via Globenewswire
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