JDM PARTNERS REACQUIRES STAKE IN DOUGLAS RANCH MASTER PLANNED COMMUNITY FROM THE HOWARD HUGHES CORPORATION®

Rhea-AI Summary

The Howard Hughes Corporation (HHC) announced that JDM Partners has exercised its option to reacquire a 2.8% interest in Douglas Ranch, a large-scale community in Phoenix's West Valley, for approximately $15 million. This transaction raises JDM's total investment in the Douglas Ranch joint venture to around $65 million, equating to about 12% ownership. The community, acquired last October for $541 million, is set to begin land sales this fall, marking significant development progress.

Positive

• JDM Partners' investment increases to approximately $65 million, strengthening their stake in the joint venture.
• Land sales at Douglas Ranch are expected to commence this fall, indicating continued development momentum.

Negative

• None.

PHOENIX, Aug. 22, 2022 /PRNewswire/ -- The Howard Hughes Corporation® (NYSE: HHC) announced today that JDM Partners has exercised their remaining option to reacquire a stake in Douglas Ranch, the recently launched large-scale master planned community in Phoenix's West Valley. The community was acquired by The Howard Hughes Corporation from JDM Partners and El Dorado Holdings last October for approximately $541 million. On August 18, JDM Partners exercised its second option to buy back into Douglas Ranch, acquiring an additional 2.8% interest in the Douglas Ranch joint venture for approximately $15 million.

The transaction brings the aggregate of JDM Partners' investment in Douglas Ranch—excluding Trillium, the community's first 3,000-acre village—to approximately $65 million, which equates to approximately 12% of the joint venture. JDM Partners and El Dorado Holdings are 50/50 joint venture partners with HHC on Trillium.

Land sales at the master planned community are expected to begin this fall.

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 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®, Las Vegas; Ward Village® in Honolulu, Hawaiʻi; 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.

Media Contact
The Howard Hughes Corporation
Cristina Carlson, 646-822-6910
Senior Vice President, Head of Corporate Communications
cristina.carlson@howardhughes.com

Investor Relations Contact
The Howard Hughes Corporation
Eric Holcomb, 281-475-2144
Senior Vice President, Investor Relations
eric.holcomb@howardhughes.com

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SOURCE The Howard Hughes Corporation

FAQ

What is the significance of JDM Partners reacquiring a stake in Douglas Ranch?

JDM Partners' reacquisition enhances their investment to approximately $65 million, giving them about 12% ownership in the joint venture, which is crucial for future developments.

How much did JDM Partners pay to reacquire their stake in Douglas Ranch?

JDM Partners paid approximately $15 million to reacquire a 2.8% interest in Douglas Ranch.

What is the expected impact of land sales at Douglas Ranch?

Land sales at Douglas Ranch are expected to begin this fall, which could contribute positively to HHC's revenue and growth outlook.

When was Douglas Ranch originally acquired by HHC?

The Howard Hughes Corporation acquired Douglas Ranch in October last year for approximately $541 million.