Oracle billionaire invests in Hawaiian island

Do you have exciting vacation plans for the summer?

Oracle Corp.’s Larry Ellison definitely does. Now the third wealthiest American citizen—with an estimated worth of US$36.5 billion—he’s closing in on a purchase even lottery winners only dream about; the infamous CEO is buying 98% of Hawaii’s pineapple island in Lanai.

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Ellison hasn’t yet revealed his plans for the 141-square-mile island, but sellers say he’s made substantial investments that will create jobs and stimulate tourism. It’s currently home to 3,200 residents and is located near Maui.

The Silicon Valley software magnate does everything is a big way, says Mike Wilson, the author of the first biography of Ellison. He says the billionaire often makes lavish investments, once buying a tennis tournament to keep it in the U.S. He’s also raced yachts in the South Pacific.

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Hawaii Gov. Neil Abercrombie publicly announced Ellison’s involvement in the deal.

The land’s current owner, Castle & Cooke Inc., filed a transfer application Wednesday with the state’s public utilities commission, which regulates utilities on the island that serve its two resorts.

The sale price for the property was not immediately clear. Lawyers for the seller redacted a copy of the sale agreement as it contains private information about Ellison and his company. The Maui News reported the asking price was between $500 million and $600 million.

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The deal involves 88,000 acres of land, plus two resorts, two golf courses, a stable and various residential and commercial buildings, lawyers told the utilities commission in its application.

And it may help island residents whether the current global crisis; many, like seventh-generation Lanaian Sol Kahoohalahala, hope to see an end to high unemployment and more opportunities for economic development.

“Tourism cannot be the only economic engine on Lanai,” he says.

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