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Royal Hawaiian Center in Waikiki is sold

By Andrew Gomes

LAST UPDATED: 04:59 p.m. HST, Jun 06, 2014

An investment banking firm has bought Royal Hawaiian Center from Kamehameha Schools in a deal that involves the single-biggest asset of the local trust but not the land underneath the Waikiki mall.

Kamehameha Schools announced Friday that J.P. Morgan Asset Management bought Waikiki's biggest shopping center for an undisclosed price.

The sale includes the mall buildings but not the underlying land.

Kamehameha Schools retained broker Eastdil Secured to find a buyer for the center in October. The trust said its decision to sell the mall was largely driven by a desire to diversify and reduce risk in its roughly $9 billion investment portfolio.

Investments help fund the trust's core mission to educate Native Hawaiian children where annual spending amounts to $300 million to $350 million.

Proceeds from the mall's sale will be reinvested and used to support normal Kamehameha Schools operations that besides education include conservation land stewardship and major real estate development projects in Haleiwa and Kakaako.

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Mythman wrote:
The return of JP Morgan. Just asking, what happens if the trust has to return title to the land the folks they took it from in the first place without paying for it? Oh, Oh, don't ask too many questions, this is Hawaii where spooky deals are normal.
on June 6,2014 | 06:19PM
saywhatyouthink wrote:
You mean Princess Kailulani.
on June 6,2014 | 06:57PM
Ewaduffer wrote:
Why would someone BUY a home or store or other business without it including the land?
on June 6,2014 | 07:29PM
HD36 wrote:
This is JP Morgan, one of the premier financial engineering leveraged speculating investment banks with ties to Amschel Rothschild's central bank dynasty. My guess, it they'll calculate the income stream from the tenants and then use a mark to model valuation to boost the yield and package a truncated form of collateralized debt obligation which they will sell to any investor looking to get a higher yield with "relative safety" better than a treasury bond but less than a junk bond. Of course their cohorts at Moody's and Fitch will rate it AAA like before the 2008 real estate collapse. Doesn't matter to JP since they get the money at practically 0% from the Fed Window and for the first time in history the big bank's are sitting on over $1 trillion in excess reserves courtesy of the Federal Reserve. Just another snowflake on an unstructural base. Not a matter of if the avalanche comes, only a matter of when.
on June 6,2014 | 08:24PM
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