According to the Hawaii Information Service, the Royal Hawaiian Center has been purchased from J.P. Morgan Asset Management from Kamehameha Schools for $696.5 million Leasehold. The sale included all of the mall buildings, but did not convey the underlying lands. Kamehameha Schools has stated that they will not disclose the length of the lease, but it is generally speculated by real estate professionals that the lease will be for approximately 60 years.
Proceeds from the sale of the Royal Hawaiian Center will be reinvested to support Kamehameha School's operations. The center was Kamehameha School's biggest single asset and the school decided to sell the property as a way of diversifying its roughly $9 billion investment portfolio. Kamehameha Schools has announced that they would also be willing to sell the Hawaii Kai Towne Center and Windward Mall in Kaneohe in a similar leasehold sales transaction. The value of these two properties combined is estimated at between $275 to $400 million Leasehold.
Source: Honolulu Star Advertiser, 7-30-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
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