KAILUA – The Harold K.L. Castle Foundation announced today that it has reached an agreement with kamaʻāina company Alexander & Baldwin, Inc. (A&B) for the sale of the Foundation’s Kailua land portfolio, which constitutes all of its land holdings.
“We are delighted to be able to pass ownership of these properties to a highly respected kamaʻāina company. A&B has a proven, long-term commitment to Hawaiʻi and its people,” said Terry George, executive vice president and chief operating officer of the Harold K.L. Castle Foundation. “The sale means that the Harold K.L. Castle Foundation will have an even greater opportunity to support important community needs and efforts. Proceeds from the sale will make the Foundation stronger than ever and will strengthen our impact on the communities we serve.”
Under the agreement, A&B will buy all of the Harold K.L. Castle Foundation’s 14 land assets – 23.5 acres on Oʻahu, of which 10.5 acres are located in downtown Kailua and 13 acres are outside of downtown Kailua – for $113 million. Proceeds from the sale will be placed in the Foundation’s endowment to serve as a permanent source of funding for its grant-making.
The sale by the Foundation will take place at the same time Kaneohe Ranch Company LLC sells substantially all of its Oʻahu commercial properties to A&B, including commercial properties in Honolulu, as well as 585 acres of agricultural and preservation lands. Kaneohe Ranch will continue to own and manage some properties on Oʻahu as well as properties in eight mainland states.
A&B will pay a total of $373 million for the Kaneohe Ranch and Harold K.L. Castle Foundation properties. The transactions are expected to close in late December 2013.
George said the Foundation will continue to have its offices at Castle Junction, at the entrance to Kailua, as it pursues its mission to strengthen the vibrancy of Windward Oʻahu communities from Kahuku to Waimānalo; close the achievement and preparation gaps in public education so that all of Hawaiʻi’s children have access to high-quality pre-K-12 education that prepares them for success in college, career and citizenship; and restore near-shore marine ecosystems.
He said there would be no changes to Foundation staff as a result of the sale, other than the possibility for growth.
George pointed out that the Foundation anticipates that A&B will continue Kaneohe Ranch’s long-term strategy of developing Kailua in a thoughtful way that keeps Kailua’s special beach town ambiance and maintains its unique appeal.
The Foundation was established in 1962 by Harold K.L. Castle. Upon his death, Castle bequeathed a sizeable portion of his real estate assets to the Foundation. These assets became the basis of all of the Foundation’s grants and charitable gifts, totaling more than $165 million over the years. The Castle family has significantly shaped the Windward side through its stewardship over the past 106 years, including preservation and restoration of the Kawainui and Hāmākua marshes.
George said the Castle Foundation’s unpaid board of directors approves bimonthly grants to a variety of important causes, including public and private school educational programs, marine protection initiatives, Native Hawaiian and youth programs, and community improvement efforts.
For example, in October, the Foundation’s board approved $681,400 in grants that included $69,500 to the University of Hawaiʻi Foundation for a crucial fish-tagging project, $270,000 to improve Native Hawaiian language early-education, as well as grants to redesign Castle High School and to train Windward Community College faculty, staff and students to assist students with mental health challenges.
For more information about the Harold K.L. Castle Foundation, visit www.castlefoundation.org.