November 20, 2013
A&B to buy Kaneohe Ranch and Harold Castle land for $373M
By Star-Advertiser
Staff
Alexander &
Baldwin, Inc. is buying the Oahu land assets of Kaneohe Ranch Co. and Harold
K.L. Castle Foundation, including most of Kailua's retail district, for $373
million. The transactions are expected to close in late December 2013.
The sale includes
two parts. Kaneohe Ranch is selling its Oahu land holdings for $260 million and
will continue to own and manage some Oahu properties as well as its mainland
land assets, the company said. At the same time the Harold K.L. Castle
Foundation will sell all of its properties to A&B.
The total sales
price for both the Kaneohe Ranch and Harold K.L. Castle Foundation land assets
is $373 million.
The combined sale
includes 36.4 acres in downtown Kailua.
"I don't believe
we could have found a better buyer than Alexander & Baldwin," said Mitch
D'Olier, Kaneohe Ranch president and CEO, and president of the Harold K.L.
Castle Foundation. "A&B is such a respected kamaaina business institution
with a similar history to that of the Castle family. They both grew from island
roots with a strong understanding of Island culture and a true, long-term
commitment to improving Hawaii. I know that Chairman and Chief Executive Officer
Stanley Kuriyama, President and Chief Operating Officer Christopher Benjamin and
their team will be good stewards of this property, its businesses and tenants,
because I've witnessed their careful and sensitive approach over many
years."
A&B said it
will fund the purchase with proceeds from the planned sale of several commercial
properties it owns on the Mainland.
"With this
purchase, we will be acquiring one of the state's largest and finest retail
portfolios, in an excellent market. This is an opportunity that rarely arises in
Hawaii, and our decision to purchase is a reflection of our confidence in and
commitment to Hawaii's future," said Stanley M. Kuriyama, A&B chairman and
chief executive officer. "This acquisition dramatically accelerates our strategy
of migrating our Mainland portfolio to Hawaii, diversifies our holdings with a
major investment in the Windward side of Oahu, and improves the quality of
earnings from our overall commercial portfolio. We look forward to working with
the Kailua community in meeting the community's needs and building upon the
successes achieved by Kaneohe Ranch and HKL Castle Foundation."
"We take a
long-term perspective on our community development efforts and strive to work
closely with communities to meet their changing needs," said Christopher J.
Benjamin, A&B president and chief operating officer. "Kailua is a thriving
and vibrant community, and we intend to partner with the community in
maintaining the livability, desirability and beauty of Kailua town."
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