Posted on: Thursday, June 5, 2003

Parent firm to buy bank building

By Andrew Gomes
Advertiser Staff Writer

The parent company of First Hawaiian Bank plans to purchase its downtown Honolulu high-rise headquarters from the building's Ohio-based owner for $194 million.

The acquisition, expected to be made by Dec. 1, will save Honolulu-based BancWest Corp. millions of dollars a year it now pays to lease First Hawaiian Center, which was completed at a cost of $175 million in 1996.

First Hawaiian Inc., before it merged with Bank of the West and became owned by French bank BNP Paribas and known as BancWest, had the 30-story tower at King and Bishop streets built with financing from Toledo, Ohio-based Dana Corp., a $9.5 billion automotive industry supplier.

Dana Corp. set up special purpose entity Refirst Inc. in 1993 to finance, build and own the high-rise, and since has charged rent to First Hawaiian's parent company.

BancWest paid $7.8 million in lease rent last year, and $15.1 million in 2001, according to financial statements. For the first three months of this year, BancWest paid $1.9 million in rent.

The lease is set to expire Dec. 1, and BancWest had the option to extend the lease, purchase the building or arrange for someone else to buy it. Recently, BancWest in financial report notes disclosed its intent to acquire the building.

Bank spokesman Gerry Keir yesterday said First Hawaiian executives were not immediately available to say how the bank plans to finance the purchase or the status of the deal. A Dana Corp. spokesman could not be reached.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.