Oceanwide Center Going To New Buyer For $1.2B
In late February, about one month after agreeing to sell the Transbay District project to SPF, Oceanwide Holdings revealed due diligence for the sale had been delayed by the coronavirus pandemic and a new delivery deadline had been set for the end of March.
Now, Oceanwide cites a continued failure to conduct due diligence and failure to further extend the delivery deadline for why its agreement with SPF has been terminated.
In the new deal, Hony Capital will pay $700M upon delivery of the properties, which include a partially complete tower at 512 Mission St. and a taller, nascent 910-foot skyscraper at 50 First St., which would be San Francisco's second-tallest building.
A remaining portion of up to $500M will come three years later and depend on the project earning a 20% internal rate of return by that point.
Planning 1M SF of office along with over 250 residential units and a 169-room Waldorf Astoria, Oceanwide began construction in 2016 before suspending building last October. The next month, it had put its San Francisco megadevelopment, along with Oceanwide Plaza in LA, on the market.
Founded in 2003, Beijing-based Hony Capital has over $12B in assets under management and boasts investment partners like Goldman Sachs and Canada Pension Plan Investment Board, according to its website.
Neither Hony Capital nor Oceanwide Holdings immediately responded to requests for comment.