Posted on: Wednesday, September 1, 2004

A&B raises its share of Kukui'ula investment

Advertiser Staff

Alexander & Baldwin has announced it will invest an additional $50 million to $75 million in the 1,002-acre Kukui'ula project on Kaua'i during the next three to four years, which will pump up its expected return from the development.

Kukui'ula, a 1,500-unit housing and resort project built around an 18-hole golf course between Po'ipu and Lawa'i Valley, is a joint venture of A&B and the Scottsdale, Ariz., developer DMB.

A&B Properties chief operating officer Stanley Kuriyama said A&B contributed the land and some improvements to the project, and that the additional cash should drive its share of the overall returns to 50 percent or more.

"A&B and DMB have an equal voice in all joint venture decisions. Financial interests, however, are determined by how much each partner contributes to the venture by way of land and cash, and how the joint venture performs over time," Kuriyama said.

While he could not predict the level of return over the project's 10- to 15-year development, "A&B's financial stake and expected returns from the venture will significantly increase," Kuriyama said.