Larry Ellison pulls a deal to purchase Lana’i Island – Part 1

New charms in the corporate world, as if the billionaires of the world were not satisfied by jets and skyscrapers, the Oracle CEO Larry Ellison is buying a whole island to his name.

The third richest person in the world, with dollar worth in around $36 Billion, as of the end of 2011, has paddled his way to increase his real estate to the far conglomerates of Hawaii. The Oracle-founder is expected to pay around $500 Million for 98 percent stake of the pineapple island of Lanai, or Lana’i.

Lanai is the sixth largest island of the small US state Hawaii in the Pacific Ocean but is the smallest inhabited island that is publicly accessible. Ellison pulled off the deal via Castle & Cooke, a real estate company.

Castle & Cooke owned the pineapple island when they were the proprietor of Dole Foods. However, after the company’s acquisition by David Murdoch, the 89-year old billionaire also on Forbes 400 roster, the island changed hands as well.

Now it is up for grabs and Castle and Cooke have released the asking price to range between $500 and $600 Million. Tough the final deal will never come to the surface, even the $500 Million price will be the record-breaking deal.

Breaking down the price brings astonishing figures to the front. At the upper limit of the price range, Ellison will steal the property for $7000 per acre, almost 16 cents per square foot. This makes it the biggest real estate deal in years but also the cheapest for size of it.

I would say it is the most expensive island probably ever sold,” says Chris Krolow, chief executive of Private Islands Inc., a Toronto-based firm that represents island real estate across the globe. “This property just doesn’t fit into any category: you’re buying an island with thousands of residents…and never have there been any islands for sale in Hawaii before this.”

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Posted by Usman Khalid on Jun 23 2012. Filed under Business, Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.