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Sia property
on market
for $1.3 mil

The 1.6-acre site in Maunalani
Heights could be divided into
five lots, a Realtor says

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By Tim Ruel
Star-Bulletin

Bankrupt businessman Sukamto Sia is selling off his undeveloped 1.6-acre, million-dollar home parcel at the top of Maunalani Heights under court supervision to help pay eager creditors.

Real estate firm ReMax Honolulu said it just started marketing the property for $1.299 million, just shy of the $1.3 million price Sia paid for it in 1988 along with spouse Indriati Latief.

Nestled among a block of homes atop a steep drive up Wilhelmina Rise from Kaimuki, the vacant land is adorned by beer cans, scattered trees, a rusted refrigerator and a small mattress.

Sia, former owner of the now-defunct Bank of Honolulu, currently resides in a luxury Waikiki Landmark condominium -- under guard -- while he awaits trial on federal charges surrounding his 1998 bankruptcy petition.

A hearing in the bankruptcy is scheduled for this afternoon, where U.S. Bankruptcy Judge Lloyd King is expected to rule on a separate $1.1 million payout to Sia's creditors.

King, who approved the sale of the property earlier this month, also may discuss a motion for Sia to pay $300,000 to his bankruptcy estate from the sale of jewelry that the U.S. government alleges Sia bought with two Hawaii state tax refunds as a way to defraud the estate. Sia has denied the charges.

Meanwhile, his vacant Maunalani property is apparently drawing interest. ReMax said in the past week it has received a dozen calls from buyers, who either want to subdivide the acreage and sell off the pieces individually, or develop one massive home.

"This property has a lot of cache, in a sense, because of its location" and size, listing agent Keahi Pelayo said yesterday. Neighbors refer to the land as the "Star property," because it was previously owned by a family of that name, he said.

A buyer is most likely to cut the property into five 10,000-square-foot lots, then sell the pieces off to homeowners for about $350,000 each, Pelayo said.

"I think it's a cost issue," he said. Development of a single massive home would tack another $1 million to $2 million to the purchase of the land. Moreover, the property's zoning already allows for the subdividing, Pelayo said. He noted Judge King would have to approve any sale.

The sale of the lot marks a positive development in Sia's bankruptcy case because it's a solid asset, said Steve Jones, an attorney representing Sia's bankruptcy trustee Guido Giacometti. Sia's past filings with the bankruptcy court have shown he also owns two residential properties in Singapore worth $7.3 million. Scott Batterman, an attorney representing creditors in Sia's Chapter 7 bankruptcy, said any sale of assets could help his clients.