Houston—The Howard Hughes Corporations has acquired Morgan Stanley Real Estate Investing’s interest in The Woodlands master-planned community. The transaction equates to 57.5 percent of Morgan Stanley’s legal interest, which equals 47.5 percent economic interest in The Woodlands. The $117.5 million price consisted of $20 million in cash payable at closing and a $97.5 million non-interest bearing promissory that is due on December 1. “The strategic acquisition provides Howards Hughes with a world-class master-planned community developer and operator, a brand widely recognized throughout the U.S., and very attractive residential and commercial assets,” says David Weinreb, chief executive officer at The Howard Hughes Corporation. “By owning all of The Woodlands, we can unleash and integrate the management expertise and intellection property of The Woodlands across our full MPC portfolio.” The Woodlands is a 28,000-acre community with 97,000 residents and 1,700 employers. The property generated $120.3 million in revenue for 2010. The Woodlands has approximately $573 million of total assets, $332 million of third-party assets and $57 million in cash as of March 31. There is still approximately 1,372 acres of unsold residential land. The terms give The Howard Hughes Corporation partial ownership of Millennium Water Way Apartments (393 units), Forest View Apartments (256 units) and Timbermill Apartments (216 units). The majority of wholly owned interest was in office and retail properties.
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