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Stanley Real Estate Funds Acquiring the Princeville Resort from the Princeville Corporation, Owner Since 1979 |
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PRINCEVILLE, Hawaii - July 16, 2004 -- Princeville
Corporation has entered into an agreement to sell the 9,000-acre Princeville
Resort on Kaua'i to a newly formed joint venture company, Princeville Associates,
LLC, led by kama'aina developer Jeffrey R. Stone, it was announced today.
The transaction now enters a due diligence period, with the sale closing
expected to occur by the end of 2004.
"We are truly honored to take on the stewardship of Princeville, and to help take this magnificent resort into an exciting new era," said Stone. "We expect to make a positive contribution to the resort's success, and to enhance the lifestyles of the North Shore and Kaua'i communities." Stone added: "We look forward to working closely with the local community, and to building upon the foundation of excellence created by the Princeville Corporation." "We have made a significant investment in continuing to upgrade and enhance the Princeville Resort over the last 14 years, even during tough economic times," said Princeville Corporation President Takashi Nishii. "But the time has come to refocus on each shareholder's core business which means the shareholders must exit from their hotel and resort operations," he added. "Selling this one-of-a-kind resort was an extremely difficult decision for us to make, but we are delighted to know that we're turning it over to a kama'aina company whose principals collectively have over 100 years of resort development experience," said Nishii. "We know Princeville Resort is in good hands, and believe the resort will continue to set the standard for excellence under new owners," Nishii added. All 600 resort employees are expected to be offered employment as part of the sale agreement. "We will continue to position Princeville Resort as a first-class destination resort and residential community and are committed to controlled growth while making substantial resort improvements, building housing units for employees, increasing jobs for the island community, and providing a strong base of work for the construction industry," continued Stone. "In short, our goal is to play a pivotal role in supporting Kaua'i's economy," Stone said. "The Princeville Corporation is to be applauded for its vision and commitment throughout the years. Truly, Princeville is like no other place in the world." Princeville Resort is considered one of the finest destination resorts in the world. Golf Digest ranks the Prince Golf Course among America's 100 greatest golf courses and number one in Hawaii. Also, the stunning natural beauty surrounding the Princeville Resort area has been featured in many popular movies. With the state, county, and community's help, Jeff Stone's most recent success is the repositioning of Ko Olina Resort on O'ahu. Since the acquisition in 1998, Ko Olina Resort has generated nearly 2,000 new jobs and brought in over $1 billion in investments to the State of Hawaii, creating a new economic engine for the county and state. The Morgan Stanley Real Estate Funds (MSREF) are a series of real estate investment funds sponsored by Morgan Stanley. MSREF has invested in over $30 billion of real estate globally since 1991. The Princeville Corporation was first formed in 1979 and began trading as a public company listed on the NASDAQ in 1984. It was taken private by the Australian-based Quintex Corporation in 1987 and was acquired out of bankruptcy by its current owners, majority shareholder Suntory Ltd, and Mitsui and Company Ltd, and Nippon Shimpan Company Ltd in 1990. |
| Contact:
Princeville Resort
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