Women's clothier Chico's FAS Inc announced that it has completed the purchase of 105 acres of property in Fort Myers, Florida, that it plans to use for a new corporate headquarters site. The total acquisition cost of $37.8 million, which includes all transaction costs and $5.4 million in road impact fees, was funded from the Company's existing cash and marketable securities balances.
Planning and design of the new headquarters site is already underway and construction of infrastructure improvements is expected to begin in 2006. The Company is still evaluating its projected needs for the planned new corporate headquarters, and as a result, believes it is premature to quantify the anticipated overall total cost for this project.
Nevertheless, the Company currently intends to use its cash and marketable securities to fund most, if not all, of the construction and build-out of the project.
The Company believes such available resources will be sufficient to fund the entire project, and is targeting early 2008 for initial occupancy. The Company is continuing to evaluate options for its existing headquarters facilities once the new facilities are built and operational, although a sale or lease of the facilities will probably prove to be the most viable options.
In addition, the Company announced today it has purchased 19 acres of improved property adjacent to its distribution center in Winder, Georgia. The Company believes this property, which includes a 50,000 square foot building, will allow it to defer for several years any need to build on its current main distribution facilities.
marketing@alchempro.com
