Oceanwide Could Take Massive Loss As It Seeks To Unload Supertall Manhattan Development Site
Evergrande’s impending collapse is having ripple effects on a development site on the other side of the globe.
Amid attempts to offload its properties nationwide and increase cash flow, Chinese developer Oceanwide is marketing its development site at 80 South St. for sale at $190M less than the $390M it paid the Howard Hughes Corp. in 2016, The Real Deal reports.
The building that Oceanwide planned to build at the spot was set to have a roof of 1,400 feet — higher than that of One World Trade Center, the tallest building in New York City. Currently, a six-story office building sits on the site, according to StreetEasy.
Oceanwide hit pause on its development plans for the skyscraper in 2019 amid a tumultuous time for the company and put it on the market along with two other projects in San Francisco and Los Angeles, New York YIMBY reported.
Oceanwide’s $3.5B development pipeline is in limbo as the company attempts to generate enough cash to pay down its enormous debts as Evergrande's debt crisis precipitated.
Evergrande, which has a total of $305B in debt, first missed payments on loans in September amid new government regulations. Earlier this week, the company failed to sell a 50% stake in its property management business, although it made a debt payment Thursday night to temporarily stave off further collapse, the Wall Street Journal reported
The crisis has hit other Chinese developers hard too. Some 20% could default on bonds, and a plummeting share value caused Sinic Holdings Group Co., another major developer, to pause trading on its stock this week.