Barnwell raises its stake in Kona

Advertiser Staff and News Services

Barnwell Industries Inc. said today it has increased its ownership interest in Kaupulehu Developments through a wholly owned subsidiary from 50.1 percent to 77.6 percent. Kaupulehu Developments is a Hawai'i partnership investing in land at Kaupulehu in North Kona.

Barnwell said the acquisition is being paid for with cash from operations. It did not disclose the value of the deal.

"This acquisition ... reflects our continued optimism regarding the Hawai'i real estate market, and positions the company's land investment segment well for the future," said Morton H. Kinzler, chairman and chief executive of the Honolulu-based oil and gas exploration company.

Kaupulehu Developments, a joint venture of Barnwell Industries and Cambridge Hawaii, plans a new resort in North Kona.

Barnwell has said the venture is beginning to get the county approvals it needs, but there is still a legal challenge to an approval before the Hawaii Supreme Court.