Maui Land & Pineapple Company, Inc. (NYSE:MLP) 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.
After filing for bankruptcy in September 2008, the joint venture’s lead
lender, Lehman Brothers Holdings, Inc. (Lehman), discontinued its
funding of the project. On January 28, 2009, the United States
Bankruptcy Court approved terms of a new loan agreement sufficient to
fully fund completion of the development.
Under the new agreement, Central Pacific Bank replaces Lehman as the
administrative agent under the loan. Lehman has agreed 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.”
About The Ritz-Carlton Club and Residences at Kapalua Bay
The Ritz-Carlton Club and Residences at Kapalua Bay offer 84 private
ownership residences and 62 residences sold in deeded, one-twelfth
fractional ownership interests, along with an abundance of amenities on
a 24-acre oceanfront site, complemented by dramatic mountain and ocean
views overlooking one of Maui’s most spectacular beaches. The
wholly-owned Residences at Kapalua Bay feature upscale,
island-influenced contemporary homes with panoramic ocean and sunset
views and spacious three and four bedroom floor plans, ranging in size
from 3,000 square feet to 4,200 square feet, including media rooms,
private lanai and den options.
