Updated at 4:36 p.m., Friday, September 14, 2007
Don Quijote pays $45.5 million for Kaheka store land
Advertiser Staff
Don Quijote (USA) has completed its purchase of land under its Kaheka Street store formerly occupied by Daiei, paying A&B Properties Inc. $45.5 million for the 4-acre site.A&B said the transaction closed yesterday. In June, A&B said Don Quijote had contracted to buy the site, but did not disclose a price.
The sale is for more than twice the $19.3 million A&B paid in 2005 to acquire the property from CEC Hawaii Inc.
A&B Properties CEO Stanley Kuriyama said his firm, the real estate subsidiary of Alexander & Baldwin Inc., bought the land intending to redevelop the site when a ground lease with Daiei terminated in 2018.
Last year, Japan-based Don Quijote bought Daiei's four stores in Hawai'i, and has been operating a discount retail business similar to Daiei largely focused on Asian-oriented general merchandise and groceries.
A&B, Hawai'i's fourth-largest landowner, said it plans to reinvest proceeds from the sale into other commercial investments through tax-deferred exchange rules.
