Hawaiçi developer Alexander & Baldwin Inc. has become the majority investor in the estimated $900 million Kukuiçula residential resort project under construction on Kauaçi, taking over the position from its Arizona-based partner that previously led the joint venture.

The move follows negotiations between A&B and Scottsdale, Ariz.-based DMB Associates Inc. after DMB informed A&B in February that it was evaluating its future ability to pay at least 60 percent of capital expenses as required under the partnership.
In the amended Kukuiçula arrangement, A&B will contribute 57 percent of total capital invested through the next three years, or a projected $240 million of $421 million, with DMB contributing 43 percent, or $181 million.
To date, the partners have already invested $257 million of the $421 million, with A&B contributing 43 percent, or $111 million that includes the project’s real estate valued at $28 million.
That means A&B has committed to spending another $129 million of the projected $164 million needed in the next three years to complete the project’s primary recreational amenities and infrastructure for residential lots.
In return for the change, A&B will co-manage the project and be entitled to a greater share of returns.
“This investment allows for the completion of what we believe will truly be one of Hawaiçi’s outstanding resort communities, and will position us to capture rising buyer demand as the economy and real estate markets recover,” Stan Kuriyama, A&B president, said in a statement.