Occidental, Howard Hughes Strike $565 Million Real Estate Deal
December 30 2019 - 5:05PM
Dow Jones News
By Micah Maidenberg
Occidental Petroleum Corp. (OXY) has sold off major real-estate
holdings in the Houston area just a few months after the energy
producer completed its acquisition of Anadarko Petroleum.
Occidental has sold property in the Woodlands development north
of Houston and a 63-acre campus in west Houston to Howard Hughes
Corp. (HHC), the companies said Monday. The transaction is worth
$565 million.
The sale "is part of our plan to divest non-core assets and
continue to improve the strength of our balance sheet," Occidental
Chief Executive Vicki Hollub said in a statement.
Howard Hughes said the deal increases its office portfolio
within the Woodlands by about 50%. It also includes 9.3 acres of
land the company can develop as well as a warehouse.
Occidental will lease back all of an 808,000-square-foot tower
in the Woodlands from Howard Hughes as well as the warehouse, the
companies said.
Howard Hughes plans to market for sale the 63-acre campus, which
includes 17 office buildings. That move, according to the company,
is "in line with its commitment to sell non-core properties and to
focus resources into the growth of its core business" of
master-planned communities, like the Woodlands.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
December 30, 2019 16:50 ET (21:50 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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