A China-based developer that is low on cash is selling a Hawaii development site while it looks to part ways with an unfinished project in downtown Los Angeles.
China Oceanwide said it would sell roughly 17 acres on the island of Oahu in Hawaii for $134 million, according to filing with the Hong Kong Stock Exchange. The buyer is managed by Honolulu-based real estate developer Tower Development.
Ed Bushor, CEO, chairman and founder of Tower Development, said the developer wants to build a 400-key luxury resort on the property along with 450 luxury branded residences. A brand name is expected to be identified after the deal is completed, he said. The property is called Lot 2 at Ko Olina.
China Oceanwide plans to use the sale's proceeds to settle transaction costs, outstanding payables and indebtedness, according to the filing.
The deal arrives as the cash-strapped China Oceanwide has been attempting to sell its U.S. properties to get a grip on its financial troubles. In April, China Oceanwide said it received letters of intent from several potential purchasers of its three-tower Oceanwide Plaza development at 1100-1198 S. Flower St. adjacent Crypto.com Arena in downtown Los Angeles. The developer expects to sell the yet-to-be-completed, mixed-use property by the end of the year.
China Oceanwide also wants to sell one other property in Hawaii and another in New York. In December, China Oceanwide sold a separate site in Oahu to an entity related to Utah-based Wasatch Group for roughly $93 million, according to filings to the Hong Kong Stock Exchange. Wasatch Group is Tower's partner, Bushor said.
China Oceanwide said it expected to sell the rest of its Hawaii properties this year, according to an annual report published in April.
In Los Angeles, China Oceanwide said it needed to sell its L.A. project to retake control of other properties it may lose to lenders in Shanghai. China Oceanwide hopes the L.A. sale will pay back any debts it owes on the unfinished development and will allow it to settle lawsuits related to the project.
China Oceanwide stopped building its downtown Los Angeles project in October 2020 after it said it ran out of cash. The project first started construction in the second half of 2014. The development was expected to feature upscale condominiums, a five-star hotel, a shopping mall and the largest LED signs on the West Coast.
Meanwhile, China Oceanwide was still in negotiations on what it planned to do with its New York project, according to the April report.
Representatives of China Oceanwide didn't respond to an emailed request to comment from CoStar News.