Barnwell seals deal
for N. Kona project
Barnwell Industries Inc. said yesterday that its 78 percent-owned Big Island real estate partnership is getting under way with residential development at Kaupulehu in North Kona.
The company has closed a transaction for the development of a first increment of 80 residential lots within an approximate 870-leasehold-acre lot area.
The partnership, Kaupulehu Developments, finalized the deal with WB KD Acquisition LLC, an affiliate of Westbrook Partners LLC, developers of Kukio Resort and other mainland projects.
Kaupulehu Developments received just less than $11.6 million from WB KD Acquisition as a follow-up to the transaction, which provides for the area to be developed as a part of nearby Kukio Resort. Kaupulehu Developments also will receive a percentage of the sales prices of the residential lots when they are sold to the public.
Kaupulehu Developments retains the development rights to a second increment within the 870-acre area on which residences and a golf course may be developed. In addition, Kaupulehu Developments holds the leasehold interest in another approximate 1,000 acres of land at Kaupulehu that is zoned for conservation.
"This real estate transaction follows nearly 10 years of the pursuit of approvals, as well as significant time spent in development planning and engineering work for this area," said Morton H. Kinzler, chairman and chief executive officer of Barnwell. "Kaupulehu Developments will have long-term interests and a continuing role in this project for many years to come."
Barnwell also said its board has declared a dividend of 50 cents a share, payable March 12 to stockholders of record on February 27. The company, which declares irregular dividends, announced a 20-cents-a-share dividend in December that was paid out on Jan. 6.
