ML&P’s KAPALUA BAY VENTURE SECURES FUNDING, SUSTAINS JOBS

(Posted by Wendy OSHER © 2009)

(Placeholder image courtesy:  The Ritz-Carlton Club and Residences at Kapalua Bay)

Maui Land & Pineapple Company today announced that it concluded a financing agreement to complete construction of its joint venture project, The Ritz-Carlton Club and Residences at Kapalua Bay.

The lead lender of the project, Lehman Brothers Holdings, Inc. (Lehman), discontinued its funding of the project after filing for bankruptcy in September 2008.

On January 28, 2009, the United States Bankruptcy Court approved terms of a new loan agreement.

ML&P officials say the terms are sufficient to fully fund completion of the development.

Under the new agreement, Central Pacific Bank replaces Lehman as the administrative agent of the loan. The agreement also calls for Lehman to provide $35 million of the $120 million in completion financing, with other co-lenders, including Deutsche Hypothekenbank and Landesbank Baden-Wurttemberg and Marriott International, Inc., providing the balance.

“We are very pleased with this outcome and are grateful to Marriott International, Inc.’s

Ritz-Carlton Development Co., the contractor Nordic/PCL and the co-lenders who continued to fund the project while completion financing issues were resolved,” said Robert Webber, President and CEO of MLP.

“Because of their commitment and the efforts of our Senior Vice President/Development, Ryan Churchill, we never lost a day of construction and were able to sustain the jobs of hundreds of construction workers from our community.”

“We continue to be encouraged by construction progress, and the project is on schedule to open in June,” continued Webber.

“We believe Kapalua Bay will offer purchasers the most stunning ocean-front luxury experience in the state of Hawai`i. Moreover, because many other luxury projects in the state have recently been abandoned, we believe the project is well-positioned for the eventual economic recovery,” said Webber.