It can’t be too long until either the whole campus is sold and leased back. How long are we thinking? 5-10 years? Sooner?
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The total cost for the campus project was almost $4 billion. That included not just the physical EMHC facilities but also a ton of IT costs and relo expenses for Fairfax. And yes they claimed a 12% DCFR on the capital investment for the project.
The profit from the sale of GP8, 800 Bell, Chemicals Katy, Fairfax, and Dallas would not even cover the labor cost for Campus.
They kept Campus cost very secret. I do recall a 20 million manhour safety celebration so that was $2 billion right there.
What was total cost to build campus??????????
I was going to buy the campus and lease it back to them, but when they decided to cut down Rex's tree I told them the deal was off.
I worked at the Gunspoint office before moving to the EMHC Campus. The Campus is a wonderful change from Gunspoint and it is so much closer to my home, just minutes away. And, it feels much safer I am loving it.
@2cyn Greenspoint became Gunspoint after all them displaced Katrina coloreds wound up there.
Rumor is that the campus will be re-stacked, with most groups fitting into roughly half of existing quads (which works out if you factor in most people being at the campus 75%-80% of the time with business travel, vacation, sick time and occasional WFH flex). The other quads would then be leased out to other companies. It makes a lot of sense, and provides some external cash floor to help pay for upcoming needed maintenance and renovations.
The profits sale of fairfax and dallas buildings and land pays for the campus, plus the old chemicals site, Brookhollow and 800 Bell
I am not justifying the campus, but for upstream at least Greenspoint was getting even more dangerous towards the end. We had to have a phalanx of security guards on front and back entrances. I cheered the last day I had to drive to that hellhole.
@1zrw+1hbEzkRs What makes you think XOM doesn't own the land where the campus sits? Here's a hint, it does. I've seen the warranty deed transferring the land. It's public record. You just need to know how to look.
I do not know how much was spent on the campus, but the ROCE on it is 0. But, if you look back, 800 Bell needed a complete renovation, with no one in the building while the asbestos was remediated. No one really liked going to Greenspoint. Brookhollow was OK, but too small. Being spread out all over town ensured a continuation of the stupid siloing of businesses that didn't want to know, and didn't care, what other business lines were doing, which led to stupidity like the refineries refusing to transfer feedstock to chem plants because the refinery didn't want to spend the money to keep things running, as they had hit their maintenance budget and didn't want to overrun.
Actually KM has been awarded over $19 million in RSUs.
Seems like a lot for a new hire before completing her first year at EM.
Actually that is likely the most any new hire has ever been compensated in their first partial year in the history of EM.
Our new CFO, KM, apparently toured the Campus and was livid that EM could spend so many Billions on a 0% rate of return project.
Maybe she will push some scheme to earn money with the campus.
She needs to make some contribution to the bottom line to justify the $12 million in bonuses in her first 5 months at EM.
That last post on Derwood….that reminds me that before Dallas comes they’ll probably have us doing trash sweeps on the quad, and cleaning the bathroom floors, urinals, toilets with toothbrushes…. Just like in Basic Training. I call dibs on pressure washing the algae off the awnings in Wellness 1!
They campus was designed for the sublet scenario. Big companies do ot all the time. I expect they'll invest money in remodeling the Wellness quad first for Derwood and his minions and then count the remaining square footage once the smoke clears on the PIP.
EMHC is part of the Springwoods Village lease. XOM does not own the land where EMHC sits.
Was the campus a big mistake? Not sure, don't care for it nor the neighborhoods. I want an office, until then I'll wfh as long as I can.
They'll take the major tejan/county tax breaks into account.
Those might be running out or not enuff bods in the place.
The lawers ill work that out, so don't worry.
If there's a Chik-Fil-A processing plant set up in your area, just hushpuppy up.
Company was better off in mostly rental space.
Im glad I got to experience working in 7 different locations in the Houston area in my forty years. Spring being the last hoe-rah.
They looked at it heavily in early 2021 when cash was an issue and DW set the debt limit. Sale leasebacks are just too uneconomic