Kamehameha Schools Acquires Former Varsity Theatre Site

June 27, 2007

Contributed by Thomas Yoshida

The site, which includes the adjacent Varsity Office Building, has been deeded to Kamehameha Schools in exchange for the Trust's Kamehameha Drive-In property in 'Aiea and an undisclosed cash payment. Robertson Properties Group is part of the Decurion portfolio of affiliated companies that includes Pacific Theatres, owner of Consolidated Theatres and the Varsity Theatre.

"Consolidated's decision to close the Varsity provided us with an opportunity to acquire a strategically valuable piece of property," said KS Vice President for Endowment Kirk Belsby. "It strengthens our ties with the University community and with Mō'ili'ili business and residential communities, and it strengthens our ability to support our educational programs and services."

Tara Young, senior commercial asset manager for Kamehameha Schools, said, "The Varsity property adds even greater synergy to our options and opportunities in Mō'ili'ili. With Puck's Alley ready for upgrades and redevelopment, we can look forward to an exciting rejuvenation of the area within the next few years."

The 'Aiea site, bounded by Moanalua Road and Kaonohi Street, is adjacent to the Pearl Ridge Mall overlooking Pearl Harbor. The acquisition by the Kamehameha Schools Trust of the site at 1106 University Avenue also includes the adjacent Varsity Office Building.

The transaction adds to Robertson Properties Group's growing portfolio of real estate investments on O'ahu. An established commercial real estate owner, develop and investor, the company recently completed The Center of Waikīkī, a specialty retail project on Kalākaua Avenue, and it is advancing development plans for the Pearl City Gateway retail center in Mānana, which is scheduled to start construction in Spring 2008.

Jeff Koblentz, CFO and Mark Weinstock, Vice President and Senior Counsel of Robertson Properties Group (RPG) structured the transaction on behalf of RPG and created an opportunity for the company to be in a rare position to partner with the Kamehameha Schools by providing a property that will help Kamehameha Schools enhance the community and in return acquire from the Trust a large development parcel in an exceptional location.

"O'ahu is one of our core target markets where we are actively developing and acquiring land. It also is a challenging market but we are well-positioned to move quickly and pursue opportunities where we can bring new uses to older properties and reposition them to better serve O'ahu residents." said John Manavian, Vice President, Development of Robertson Properties Group.

In the coming months Robertson Properties Group will begin the process of creating a master plan for the 'Aiea site, according to Manavian. "We will meet extensively with the city and the community before we evaluate a variety of possible uses including retail, restaurants, office as well as other development concepts," he added.

About Kamehameha Schools
Kamehameha Schools is a private, educational, charitable trust founded and endowed by the legacy of Princess Bernice Pauahi Bishop. Kamehameha Schools operates a statewide educational system enrolling more than 6,700 students of Hawaiian ancestry at K-12 campuses on O'ahu, Maui and Hawai'i and 30 preschool sites statewide. Thousands of additional Hawaiian learners are served each year through a range of other Kamehameha Schools' outreach programs, community collaborations and financial aid opportunities in Hawai'i and across the continental United States. Through such community collaborations, whole communities are served by this legacy, Hawaiians and others alike, so that the entire State of Hawai'i benefits.

About Robertson Properties Group
Robertson Properties Group is a privately owned real estate company specializing in the development and redevelopment of retail and mixed-use properties. The firm is actively pursuing new acquisition opportunities ranging from 10 to 100+ acres with focus on the western United States and Hawai'i. The firm's solid track record and experience, access to capital and strong financing relationships allows it to be flexible in deal structures and provides the ability to close deals quickly. Headquartered in Los Angeles, Robertson Properties Group owns and manages more than five million square feet of commercial and retail space.