University of Hawaii gets donation that could equal $7B
HONOLULU (AP) — University of Hawaii alumnus and real estate investor Jay Shidler has donated a collection of Mainland commercial properties to his alma mater’s business school, which could earn the university $7 billion throughout the next century.
The 71-year-old’s donation is the largest University of Hawaii has received in its 110-year history. Shidler, who the university’s business school is named after, donated his stakes in land under 11 office and hotel buildings in nine Mainland cities.
The income from ground lease payments on those stakes throughout the next 99 years will total $2.1 billion, the Honolulu Star-Advertiser reported Wednesday.
After those ground leases expire, the university’s stake would be worth $5.1 billion if the properties only appreciate at the historical annual inflation rate of around 3 percent, Shidler estimated.
University officials said they could use that income stream to eliminate business school tuition within 40 years.