Foxconn subsidiary expands with Houston property deal

Published 03/06/2025, 12:38
Foxconn subsidiary expands with Houston property deal

HOUSTON - Foxconn (SS:601138) Assembly LLC, a subsidiary of Hon Hai (TW:2317) Precision Industry Co Ltd, has acquired right-of-use assets for two factory buildings in Houston, Texas, marking a significant expansion of its operational footprint. The transaction, which took place on Tuesday, involves a total of 601,680 square feet of space, with the annual rental price averaging $9.3994 per square foot, resulting in a total contract rent of approximately $56.55 million.

The buildings, located at 8228 and 8118 Houston Avenue, were acquired from TDC Innerbelt NW 34 Partners, LLC, with no existing relationship between the trading parties. The total transaction amount for the right-of-use assets stands at $45 million. The lease terms for the two factories are 122 and 124 months respectively, each including a rent-free period at the beginning of the term.

In determining the price for this transaction, Foxconn’s Board of Directors relied on negotiations benchmarked against market prices. Professional appraisals were conducted by MABLANE & ASSOCIATES, INC. and NEWMARK VALUATION & ADVISORY, with appraisal prices set at $8.00 and $7.92 per square foot per year, respectively.

The acquisition serves Foxconn’s operational needs, with no dissenting opinions from directors regarding the transaction. It was also confirmed that the counterparty in this transaction is not a related party. The board of directors passed a resolution approving the acquisition on the same day as the transaction, emphasizing the importance of the expansion to the company’s strategic growth.

This move by Foxconn Assembly LLC reflects a strategic investment in its operational capabilities, ensuring the company’s continued growth and support for its manufacturing services. The information regarding this transaction is based on a press release statement, ensuring transparency and factual reporting of the company’s latest business activities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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