September 13, 2002
Contributed by Kekoa Paulsen
A broad auction process will be conducted among selected likely timberland investors. The process is expected to commence immediately. KS has been contacted by investors seeking a privately negotiated sale; however, the Trust has decided to conduct a broad auction sales process in order to fulfill its fiduciary responsibilities. The timber assets are located on 390,000 acres in Michigan's Upper Peninsula and provides high quality hardwood timber and pulpwood for domestic suppliers. The timber lands are located in ten counties and include the Two-Hearted River Watershed; lake, pond and river frontage; 230 inland lakes and a significant amount of residential, commercial and industrial zoned lands. Under KS' ownership, the forest has been managed in accordance with leading industry standards with the intent of strengthening the forest's timber stand quality and long-term sustainability. KS is the largest non-industrial timberland owner in the Upper Peninsula and ranks third, behind International Paper and MeadWestvaco, in overall ownership in the Upper Peninsula. KS acquired the Michigan forestland from one of its former subsidiaries and its partner in 1994. In conjunction with KS' implementation of its current Investment Policy, KS is considering measures to re-balance its overall portfolio, including reallocating some of its U.S. mainland real estate holdings to other asset classes. Kamehameha Schools is a private, charitable educational trust with assets of $5.4 billion, which was founded by the Estate of Princess Bernice Pauahi Bishop. The Trust operates preschools, K-12 campuses and other educational programs throughout Hawaii and provides post-secondary scholarships to students of Hawaiian ancestry.
Kamehameha Schools’ policy is to give preference to applicants of Hawaiian ancestry to the extent permitted by law.
