Completing the strategy announced in October, Kamehameha Schools said Tuesday it intends to offer for sale the buildings and other improvements at Hawai'i Kai Towne Center and Windward Mall in Kaneohe while retaining ownership of the underlying land.
In October, Kamehameha Schools announced it was selling the Royal Hawaiian Shopping Center buildings while retaining ownership of the underlying land.
Kamehameha Schools says this decision is part of the trust's broad, ongoing stewardship strategy to proactively optimize the growth and perpetuity of the endowment that supports Kamehameha Schools' educational mission.
"Transitioning these two retail centers from fully-owned Kamehameha Schools' properties to ground leases where Kamehameha Schools retains our lands but sells its improvements greatly strengthens our perpetual endowment," said KS Vice President for Endowment Elizabeth Hokada. "As with our Royal Hawaiian Center offering, this action is aligned with our 2000-2015 Strategic Plan, which calls for active stewardship of our lands – whether for commercial, agricultural or conservation purposes - while prudently optimizing the value and use of Kamehameha’s financial and nonfinancial resources in support of our educational mission."
Over the past 10 years, Kamehameha Schools says it has spent more than $2.6 billion on education in Hawaii. Educational programs, collaborations and other activities supported by Kamehameha Schools serve more than 47,000 learners and families each year. In addition to operating private schools, Kamehameha serves as the largest private funder of public education in Hawaii.
"The successful sale of these improvements would further reduce risk to our endowment through greater diversification," said Paul Quintiliani, KS Senior Director of Commercial Real Estate. "And the sale will have no impact on the leases we have with our current tenants. The thriving business at Windward Mall and Hawai’i Kai Towne Center should continue as usual under a Kamehameha Schools ground lease, similar to the successful ground leases we have with numerous other businesses in both of those communities."