The South Financial Group Announces Headquarters Will Remain in Downtown Greenville (Business Wire)
Tue, 2 Jun 2009 20:30:00 Etc/GMT
“We determined that the best course of action for our shareholders is to keep our headquarters in downtown Greenville,” said H. Lynn Harton, President and Chief Executive Officer of The South Financial Group. “Our downtown location offers space for our headquarters at an attractive long-term cost. Remaining in our current location has the added benefit of helping to anchor the ongoing development of Greenville’s vibrant downtown business community.
“This decision also places the Upstate Community in an enviable position relative to other competing locations for the attraction of significant new business development. The facilities we will be marketing are highly desirable ‘green’ facilities in one of the most exciting high-tech parks in the country. It will make a great home for the right company.”
TSFG plans to work with local city, county, and state authorities to assist in the recruitment of new business to the area to maximize the use and value of the site for TSFG’s shareholders. TSFG expects to work with real estate advisors to help identify potential buyers both nationally and internationally, given the Upstate’s strong attractiveness to international investment.
In the interim, TSFG expects to take advantage of the campus facility to house some operations that are currently located in facilities with leases expiring in 2009. Approximately 50,000 square feet, or approximately 20% of the available space in the two office buildings at the campus, will be occupied by these operations.
Through May 31, 2009, TSFG has invested approximately $80 million in the project and has entered into additional commitments of approximately $8 million. Based on the current environment, initial estimates of value, and an 18 to 36 month marketing period, TSFG expects to record a second quarter 2009 pre-tax impairment charge of approximately $16 million.
Campus Background
The campus site contains approximately 60 acres. During 2005, TSFG acquired the site and initiated plans for a “corporate campus.” Site infrastructure and landscaping is nearing completion and is expected to be finished in fall 2009. Three buildings – two office buildings and a conference center – are under construction, and ten additional building sites are available. The buildings have been designed and constructed to meet LEEDS Silver Standards, and the entire campus has been constructed so that additional buildings receive site points toward LEEDS accreditation.
Details for the buildings under construction follow:
- Office Building “A” – 127,000 square feet with loading dock, fitness facility, security, and campus infrastructure operations; ready for occupancy in July 2009
- Office Building “B” – 107,000 square feet and is a mirror image of “A” without the underground level; ready for occupancy in July 2009
- Conference Center – approximately 41,000 square feet; the core and shell of the building will be completed in September 2009, and the interior build-out will not be completed until further development of the location.
General Information
The South Financial Group is a bank holding company dedicated to serving small businesses, middle market companies, and retail customers in the Carolinas and Florida. At March 31, 2009, it had approximately $13.3 billion in total assets and 180 branch offices. TSFG operates Carolina First Bank, which conducts banking operations in North Carolina and South Carolina (as Carolina First Bank), in Florida (as Mercantile Bank), and on the Internet (as Bank CaroLine). At March 31, 2009, approximately 45% of TSFG’s total customer deposits were in South Carolina, 42% were in Florida, and 13% were in North Carolina. Investor information is available at www.thesouthgroup.com.
This news release contains forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995) that are provided to assist in the understanding of anticipated future financial performance. These statements include, but are not limited to, descriptions of management's plans, objectives, or goals for future operations, and predictions, forecasts, or other statements about future operations. They also include such items as the initial estimated value of the campus facility, marketing period, and impairment charge. However, such statements necessarily involve risks and uncertainties, and there are a number of factors – many of which are beyond TSFG’s control -- that could cause the actual conditions, events, or results to differ materially from those in such statements. The South Financial Group undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.
Contact:
The South Financial Group, Inc. James R. Gordon, 864-552-9050 Senior EVP & Chief Financial Officer or Mary M. Gentry, 864-421-1068 EVP – Investor Relations
source: http://biz.yahoo.com/bw/090602/20090602006583.html?.v=3