HCI Group Headquarters to be Acquired by State of Florida as part of Road Improvement Project

Rhea-AI Summary

HCI Group, Inc. (NYSE: HCI) has announced an agreement with the Florida Department of Transportation for the sale of its headquarters property and a nearby right of way for $47.5 million. After transaction costs, Greenleaf Capital, HCI's real estate division, anticipates a net gain of approximately $44 million. The transaction, linked to a road improvement project, is expected to finalize by July 2020, with HCI retaining the option to occupy the property for up to three years. HCI CEO Paresh Patel expressed disappointment but acknowledged the project's significance for Tampa's transportation.

Positive

• HCI to net approximately $44 million from the sale after transaction costs.
• Retains option to occupy headquarters for up to three years, providing operational continuity.

Negative

• Disappointment over losing ownership of the headquarters property.
• Potential long-term operational challenges if a new headquarters is not established timely.

TAMPA, Fla., June 01, 2020 (GLOBE NEWSWIRE) -- Greenleaf Capital, LLC, the real estate division of HCI Group, Inc. (NYSE:HCI), has entered into an agreement with the Florida Department of Transportation by which the State of Florida will acquire HCI’s headquarters property and a nearby right of way in connection with a planned road improvement project. The combined compensation to Greenleaf for the acquisitions is set at $47.5 million. After transaction costs, Greenleaf expects to net approximately $44 million. The property, known as “Cypress Commons,” is located at 5300 West Cypress Street in Tampa. The transaction is expected to conclude by the end of July 2020.

As part of the agreement, HCI has the option to occupy the headquarters property for up to three years after the acquisition. During this time, Greenleaf will continue to manage the property, which has numerous tenants.

Management Commentary
“While we are disappointed to give up ownership of our headquarters, we are gratified the property will play a significant role in improving Tampa’s system of transportation,” said HCI Group Chief Executive Officer Paresh Patel.

About Greenleaf Capital
Greenleaf Capital, LLC is the real estate division of HCI Group, Inc. Greenleaf owns and manages numerous Florida real estate properties, including office buildings, retail shopping centers and waterfront properties. Greenleaf Capital owns and manages over 500,000 square feet of space on over 60 acres of land. For more information, please visit www.gleafcapital.com.

About HCI Group, Inc.
HCI Group, Inc. is an InsurTech company with operations in insurance, software development and real estate. HCI’s leading insurance operation, TypTap Insurance Company, is a rapidly growing, technology-driven insurance company, which provides homeowners’ insurance and flood insurance primarily in Florida. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners’ insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.

The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.

Company Contact:
Rachel Swansiger, Esq.
HCI Group, Inc.
Tel (813) 405-3206
rswansiger@hcigroup.com

Investor Relations Contact:
Matt Glover
Gateway Investor Relations
Tel (949) 574-3860
HCI@gatewayir.com

Media Contact:
Amber Brinkley
Kippen Communications
Tel (727) 466-7695
amber@kippencommunications.com

FAQ

What is the value of the property HCI sold to the Florida Department of Transportation?

The property was sold for $47.5 million.

How much will HCI net from the sale after costs?

HCI expects to net approximately $44 million from the sale.

When is the transaction between HCI and Florida Department of Transportation expected to conclude?

The transaction is expected to conclude by the end of July 2020.

What option does HCI have regarding the headquarters post-sale?

HCI has the option to occupy the headquarters property for up to three years.

What role will the sold property play in Tampa's infrastructure?

The property will be part of a planned road improvement project in Tampa.