AOL To Sell Pacific Corporate Park to CB Richard Ellis Realty Trust
$144.5 Million Transaction Includes 700,000 Square Feet of Office Space Plus 22 Acres of Undeveloped Land Near Dulles Airport
New York, NY, October 29, 2010 – AOL Inc. (NYSE:AOL) today announced that it has entered into an agreement for the sale of four office buildings it no longer utilizes and two undeveloped parcels of land on the East side of its Dulles campus to CB Richard Ellis Realty Trust for $144.5 million. As of October 29, pro forma for the sale AOL has approximately $750 million of cash on hand.
"A part of AOL's strategy during our turnaround has been to dispose of non-core assets," said Artie Minson, Executive Vice President and Chief Financial and Administrative Officer. "While the Dulles campus is an important part of AOL's future, we simply had no need to continue owning the additional space -- having already moved all of our talent in Dulles to one side of the campus. With a long-term lease in place it made sense for us to pursue a sale to realize maximum value of these assets and add significant cash to our balance sheet."
The combined total office space is approximately 700,000 rentable square feet in the four buildings and is known as Pacific Corporate Park. The two parcels of undeveloped land, also in Pacific Corporate Park, total approximately 22 acres. AOL, which originally purchased the land located on the East side of its campus in 1996, had vacated these office buildings by early 2010. The buildings are 100% leased, with a majority of the space leased to one tenant for a 10-year term.
AOL continues to have over 1,800 full-time employees on its Dulles campus in three office buildings. AOL also maintains two data centers in Virginia -- one on its Dulles campus and one in Manassas.
AOL was represented by CB Richard Ellis in this transaction. The deal is expected to close by mid-November and is subject to customary closing conditions.
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements identified by words such as "anticipate," "may," "will," "intend," "should," "expect" or similar expressions. These statements are based on the current expectations and beliefs of AOL's management, and are subject to uncertainty and changes in circumstances. Any forward-looking information is not a guarantee of future performance and actual results may vary materially from those expressed or implied by the statements herein, due to changes in economic, business, competitive, technological, strategic and/or regulatory factors, as well as factors affecting AOL's operations and businesses and the buyer's ability to proceed with the transaction. More detailed information about these factors may be found in AOL's reports filed with the SEC from time to time. AOL is under no obligation to, and expressly disclaims any obligation to, update or alter the forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise.
AOL Inc. (NYSE:AOL) is a leading global Web services company with an extensive suite of brands and offerings and a substantial worldwide audience. AOL's business spans online content, products and services that the company offers to consumers, publishers and advertisers. AOL is focused on attracting and engaging consumers and providing valuable online advertising services on both AOL's owned and operated properties and third-party websites. In addition, AOL operates one of the largest Internet subscription access services in the United States, which serves as a valuable distribution channel for AOL's consumer offerings.