Jack Tyrrell specializes in Kakaako, Honolulu, Hawaii luxury condo projects.

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China investment in Hawaii land to bring opportunities to the state

This satellite map shows the area called Kapolei West. China Oceanwide Holdings Ltd., a company that is headed by one of that country’s richest men, is making a bold, but smart move by purchasing the planned 516-acre master-planned golf course community that would connect two key areas of West Oahu — the City of Kapolei and Ko Olina Resort, Duane Shimogawa, Pacific Business News.

This satellite map shows the area called Kapolei West. China Oceanwide Holdings Ltd., a company that is headed by one of that country’s richest men, is making a bold, but smart move by purchasing the planned 516-acre master-planned golf course community that would connect two key areas of West Oahu — the City of Kapolei and Ko Olina Resort, Duane Shimogawa, Pacific Business News.

Duane Shimogawa of Pacific Business News reports on the potential brought by China investment in Hawaii land, below:

China Oceanwide Holdings Ltd., a company that is headed by one of that country’s richest men, is making a bold, but smart move by purchasing a planned 516-acre master-planned golf course community from a Hawaii company that would connect two key areas of West Oahu — the City of Kapolei and Ko Olina Resort, multiple sources tell Pacific Business News.

Steve Kelly, an executive with James Campbell Co., one of the largest landowners in Hawaii and the master developer of Kapolei, told PBN this week that it has an agreement with China Oceanwide Holdings for “potential property and infrastructure investments in the Kapolei West” property.

“The agreements are still subject to a number of conditions and discussions are ongoing,” he said. “The agreements are applicable to the entire Kapolei West project area.”

Local real estate expert Ricky Cassiday told PBN that it is a natural fit, one that Jeff Stone of The Resort Group , master developer for the Ko Olina Resort, foresaw a generation ago when he optioned this property from James Campbell Co.

“Given some views looking back towards Diamond Head, they should easily surpass the existing single-family resort home [prices],” he said.

Cassiday noted that homes developed there could fetch between $900,000 and $1.5 million, with a comparison to Wailea Meadows on Maui, where prices of homes range between $1 million and $4 million.

Stone, who, along with a subsidiary of The Harry and Jeanette Weinberg Foundation, sold two oceanfront lots at the 642-acre Ko Olina Resort for nearly $200 million to China Oceanwide Holdings, told PBN that this company "will become a great steward for these lands that connect Ko Olina to Kapolei."

The Kapolei West land is zoned for the development of some 2,500 townhouses and apartments and preservation land for a planned golf course. It could also include an elementary school, commercial spaces and a mass transit hub.

Last year, Chinese investors spent at least $5 billion on real estate in the United States, according to Manny Menendez, who specializes in international business development, trade and investment, and has worked with China and the Asia-Pacific region for more than 35 years.

“That trend will go up and there’s a huge opportunity for Hawaii to partner with China,” he told PBN from his office in Beijing. “There are lots of positives from these purchases, including bringing lots of opportunities for the local business community.”

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Market News: Why Hawaii can expect an infusion of capital from the Asia-Pacific market

Photo courtesy of Pacific Business News

In September 2015, JTC was pleased to attend the Asia-Pacific Real Estate Congress in Honolulu hosted by the International Real Estate Federation (FIABCI). One of the main focuses of the day was why Hawaii is strategically poised to expect an infusion of capital from the Asia-Pacific markets. Pacific Business News' Duane Shimogawa wrote an excellent overview of the talk, given by Steve Williams of Real Capital Analytics, below:

Hawaii is expecting an infusion of global capital from the Asia-Pacific market, and there are several reasons why this phenomenon will happen, according to Steve Williams, executive managing director of Real Capital Analytics.

Williams, who was the keynote speaker at last week’s Asia-Pacific Real Estate Congress in Honolulu, reasoned that in China, an increasingly prosperous middle-class has gradually built a reserve of 30-year savings.

He also noted that the recovery of the North American economy and the strengthening of its currency in the United States and Canada, has helped increase the interest in investments in these areas, including Hawaii.

“Asian investors see the U.S. as a strong and stable market to invest in,” Williams said, noting that in Hawaii, there’s been a nearly 30 percent increase in more cross-border capital being deployed this year compared to last year.

Additionally, he pointed out that transparency is key to markets experiencing that hope to experience an infusion of capital investments.

“The markets with the most transparency, the most data available, are the most attractive to investors,” Williams said.

In the first half of 2015, there were $400 billion in deals done in U.S., including $67 billion in capital coming via the Asia-Pacific region and $201 billion from the Americas, according to Real Capital Analytics data, which tabulated deals over $5 million in this category.

The conference, which was held in Waikiki from Sept. 10-12, examined the key issues for the real estate profession, including the need to focus on real estate development around active transportation hubs.

Duane Shimogawa covers energy, commercial real estate and development for Pacific Business News.

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