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The Honolulu Advertiser

Posted on: Wednesday, June 11, 2003

Maui Land says buyer found for Napili Plaza

By Andrew Gomes
Advertiser Staff Writer

Maui Land & Pineapple, a diversified real estate and agriculture company that is selling its interest in Maui's largest mall, also is selling a smaller shopping center, Napili Plaza, in West Maui.

The company said it has found a prospective buyer for the 45,000-square-foot center between Ka'anapali and Kapalua, but has yet to finalize a purchase agreement.

Scott Crockford, Maui Land & Pine real property vice president, said he was not at liberty to identify the prospective buyer yesterday.

A sale, if completed along with the company's planned sale of Queen Ka'ahumanu Center in Lahaina, largely would withdraw Maui Land & Pine from the retail property management business and mark a significant change for the publicly owned conglomerate, which is trying to return to profitability.

Maui Land & Pine's major assets are Kapalua Resort, residential real estate development, pineapple production and commercial property, including Ka'ahumanu Center and Napili Plaza.

The two shopping centers are among the smaller operations for the company, which lost $5.7 million last year after five consecutive years of profits.

Napili Plaza has been a source of operating profit for the company's commercial property operations, which posted an overall $416,000 operating loss last year.

The center at the end of last year was 79 percent occupied with 22 tenants, including First Hawaiian Bank, Maui Tacos, Subway and Koho Grill & Bar.

Napili Plaza sales declined 5 percent last year, the second consecutive annual decrease.

Sales at the 572,000-square-foot Ka'ahumanu Center, the island's largest mall, decreased 3 percent last year and resulted in a $1.2 million pre-tax loss for Maui Land & Pine, which owns the center in equal partnership with the state Employees Retirement System.

The sale of Ka'ahumanu Center is expected to be complete by the end of July. An estimated timetable for a Napili Plaza sale was not immediately available yesterday.

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