NEWS RELEASE
Royal Hawaiian Center sold to institutional investors advised by J.P. Morgan Asset Management
Posted: June 6, 2014
Kamehameha Schools and J.P. Morgan Asset Management announced today that they have completed the sale of the buildings and other improvements at Royal Hawaiian Center. Financial terms of the transaction are confidential.
This completes the transaction initiated in October 2013, when KS announced it would transition RHC to a long-term ground lease as part of the trust’s proactive strategy to optimize the growth and perpetuity of the endowment that supports Kamehameha Schools’ educational mission.
“The transition of the Royal Hawaiian Center from a fully-owned Kamehameha Schools property to one where Kamehameha Schools retains the land but sells its improvements greatly strengthens our perpetual endowment. This is aligned with our 2000-2015 Strategic Plan, which calls for active stewardship of our lands while optimizing the value and use of current financial and nonfinancial resources in support of our educational mission,” said interim CEO Livingston “Jack” Wong. “With this decision, we are able to keep and care for this special property while investing the proceeds from the sale of its improvements to benefit our children’s futures in perpetuity.”
Over the past 10 years, Kamehameha Schools has spent more than $3 billion on education in Hawai‘i. Educational programs, collaborations and other activities supported by Kamehameha Schools serve more than 47,000 learners and their families each year. In addition to operating private schools, Kamehameha is the largest private funder of public education in Hawai‘i.
“Kamehameha Schools has created, maintained and continually enhanced the world-class shopping and community destination at Royal Hawaiian Center. We are excited to continue Kamehameha Schools’ responsible stewardship of this important local asset, its enthusiastic promotion of Hawaiian culture, and its enriching community programs,” said Chris Graham, Managing Director and Head of Western U.S. Acquisitions for J.P. Morgan Asset Management. “Royal Hawaiian Center is one of the nation’s finest shopping venues and is an outstanding addition to our portfolio of best-in-class core retail properties.”
“Proceeds from this sale will be reinvested across our endowment to further diversify our portfolio and add strength through better balance and lower risk,” said Elizabeth Hokada, KS Vice President for Endowment. “J.P. Morgan is well known in the business community as a smart, solid investor, and they have indicated an interest in furthering those aspects of Royal Hawaiian Center that have made it one of the top shopping venues in the world. We look forward to working with them to help make that happen.”
Royal Hawaiian Center, the premier shopping, dining and entertainment destination in Waikīkī, is located on a 6.3 acre parcel along a three-block stretch of famed Kalākaua Avenue. The Center comprises just over 322,000 square feet of leasable area with more than 110 shops and restaurants. A unique 30,000 square foot cultural venue, The Royal Grove, is reminiscent of Waikīkī’s historic Helumoa coconut grove. The Center was built in 1979 and underwent a renovation in 2005.
For more information about Kamehameha’s commercial real estate activities, go to www.ksbe.edu/cred.
About J.P. Morgan Asset Management — Global Real Assets
J.P. Morgan Asset Management — Global Real Assets has more than $73 billion in assets under management and more than 400 professionals in the U.S., Europe and Asia, as of March 31, 2014. With a 40-plus-year history of successful investing, J.P. Morgan Asset Management — Global Real Assets’ broad capabilities provide many of the world’s most sophisticated investors with a global platform of real estate, infrastructure, maritime/transport and energy strategies driven by local investment talent with disciplined investment processes consistently implemented across asset types and regions. The Global Real Assets team is part of J.P. Morgan Asset Management's Alternatives Investments business, which collectively manages over $120 billion in client assets across real assets, hedge funds, and private equity.
J.P. Morgan Asset Management media contact: Gregory Roth, 212-622-4332
