Kamehameha Schools and Kennedy Wilson, a global real estate investment company, have reached a final agreement on a ground lease of the Kona Village Resort property on Hawai‘i island.
While complete terms of the transaction remain undisclosed, the agreement allows Kennedy Wilson to immediately begin restoring and enhancing the 81.4 acre property, while maintaining a clear focus on retaining the original vision as a low-density iconic destination.
The agreement also allows for the rehabilitation of the 125 vacation bungalows (hale), the property’s infrastructure and other operational improvements.
“This agreement is a testament to the commitment and diligence of all parties that will reconnect the resort with the Kona community, “ said Walter Thoemmes, Kamehameha Schools’ managing director of commercial real estate. “Kona Village will provide much-needed jobs for the West Hawaiʻi Region and will perpetuate Native Hawaiian identity through its rich cultural history. We are excited to have a project partner that maintains the vision.”
With the agreement in place, Kennedy Wilson is now poised to focus on redevelopment and rehabilitation plans with an anticipation of being fully operational by the summer of 2019.
Prior to its closure in 2011, Kona Village Resorts was in operation for 45 years. Opening its doors in 1965, Kona Village employed a significant role in the economic and cultural vibrancy of the West Hawai‘i island region.
Kamehameha Schools, a private charitable educational trust, is Hawai‘i’s largest private landowner, responsible for the stewardship of over 365,000 acres of land on Hawai‘i island, Maui, Moloka‘i, O‘ahu and Kaua‘i.
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