LandAmerica to Relocate Corporate Headquarters in Richmond, Va.
|January 19, 2006|
RICHMOND, Va., -- LandAmerica Financial Group, Inc. (NYSE:LFG), a leading provider of real estate transaction services, announces it plans to relocate and consolidate its national headquarters and shared resources operations into a larger Richmond campus. The new LandAmerica corporate campus will initially house over 890 employees and contractors in 297,000 square feet at the Highwoods III, located in the Innsbrook Corporate Center at 5600 Cox Road, Glen Allen, VA. LandAmerica's existing headquarters building consists of approximately 128,000 square feet of office space.
"Since occupying its current space in 1998, LandAmerica has significantly expanded its business to broaden the depth and breadth of its real estate transactions services offering," said President and Chief Executive Officer Theodore L. Chandler, Jr. "Our employees in Shared Resources provide a strong foundation of support to 13,225 LandAmerica employees across the United States and in a number of foreign countries who serve our customers through our agency, commercial, residential, and lender services channels."
In the last few years, LandAmerica's operating revenue has grown from $1.8 billion for the full year 2000 to $3.4 billion for the full year 2004. LandAmerica has operated in Richmond since 1925 when its subsidiary, Lawyers Title Insurance Corporation, established its headquarters here.
"Our new facility will allow all of our shared resources personnel to work on the same campus," Chandler continued. "This move will consolidate several leased and owned spaces into one location to allow for more efficient and productive corporate operations. With a history in Richmond that dates back more than 80 years, we believe the Richmond Metro area offers a great environment for the company to continue to grow."
In connection with this move, LandAmerica intends to sell its existing headquarters building and related assets located at 101 Gateway Centre Parkway, Richmond, VA. Additionally, LandAmerica has an exit strategy for its office leases at 9011 Arboretum Parkway. In accordance with current accounting guidance, the Company will write down the headquarters building and related assets to the fair value less cost to sell. The Company has estimated that the impairment charge from the write down of the building and related assets is approximately $8.0 million, which will be reflected in the Company's results of operations for the three months ended March 31, 2006. Additionally, the Company expects that the future cash expenditures to exit certain leases related to the sale and relocation of the corporate operations will be approximately $2.9 million.
Source: LandAmerica Financial Group, Inc.