May 1, 2001
Contributed by CEO Message
Rationale for this moratorium is straightforward: we recognize that market
conditions may have changed since the last valuation of our inventory, so we
are taking this opportunity to update our prices based on the current market.
If everything goes according to plan, we will have a new price list in about
four months. Prices may increase or decrease, depending on regional market factors.
As you are already aware, Kamehameha Schools has been in the process of exiting the residential leasehold arena since the mid-1980's. In fact, of the 14,865 single-family house lots it originally owned, KS has sold all but 390 since 1987. In 1991, KS began selling its interest in 12,700 multi-family units. Today, 4,920 remain unsold.
In accordance with Kamehameha's overall investment policy, we will continue to move Kamehameha Schools out of the residential leasehold business so those assets can be re-deployed to other asset classes. We also want to move away from investments that might jeopardize our private property rights as a result of increased government controls, and to arrive at a balanced, well-diversified investment portfolio that will provide the best returns possible in support of Kamehameha's educational programs.
Sales that are currently being processed based on Kamehameha's current price schedule will be allowed to close with required documentation and buyers who urgently require a price quotation during the moratorium will be given a quote based on the current schedule. Properties that may be desirable for conversion to educational, commercial or other higher use may not be included in the updated sales program.
This matter may become a topic of interest for our local media, and I wanted to let you know about our moratorium before you read or hear about it elsewhere. Mahalo for your continued support of Kamehameha Schools.
Kamehameha Schools’ policy is to give preference to applicants of Hawaiian ancestry to the extent permitted by law.
