Oceanwide strikes deal to sell Hawaii project to Tower Development at loss

Beijing-based China Oceanwide Holdings is continuing to shed its U.S. assets, this time striking a deal to sell one of its projects in Hawaii.

Oceanwide has struck a deal to sell its 44-acre Ko Olina project on the island of Oahu for $134 million, according to a financial filing with the Hong Kong Stock Exchange. 

At Ko Olina, Oceanwide has planned to build two hotels, residential condos and an Atlantis-branded resort with 800 rooms and 524 branded residences, according to a 2022 annual report. 

As of the end of last year, Oceanwide had spent $527 million on the development, though construction had not started. 

Tower Development, a Hawaii-based real estate development firm run by Ed Bushor, has agreed to purchase the site, the filing said. 

Under the deal, Oceanwide will waive its right to repurchase the property, after a Hawaii court ruled it could not trigger the option. 

Oceanwide has already sold off another Hawaii project in planning. In December, the firm sold its Kapolei West development for $92.9 million, filings show, resulting in a loss of $26 million for Oceanwide. 

Proceeds from that sale did not cover all debt connected to the property, Oceanwide said in its annual report. 

“The company expects that the debts owed to noteholders will be settled after the disposal of such remaining land parcels of the Hawaii projects,” Oceanwide said in its 2022 annual report.

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The firm still has one project in L.A. — the unfinished Oceanwide Plaza tower in Downtown L.A.. In June, Oceanwide defaulted on an EB-5 loan tied to the development, owing $157.4 million to the group of lenders as of January. 

Oceanwide has said in filings that it would need more than $1.2 billion to finish construction of the project.