Oyster Point Development has suspended its plans to build 1,200 housing units in South San Francisco. The company, a subsidiary of Greenland USA, did not indicate if the residential component would be wiped out of the project, only that plans were on hold, the San Francisco Business Times reports.

The entire project has been in question following new Chinese government regulations for high-cost projects abroad. Greenland also entered into a deal with Kilroy Realty Corp. to buy the first two phases of the project with an option to buy the final two phases at a later date.

The developer has been working on adding housing to its office project since early 2017 at The Landing at Oyster Point, but recently faced opposition from local biotech companies and the California Life Sciences Association. Many of these biotech companies want to keep land available for future expansion and argued that adding housing along Oyster Point Boulevard would add to traffic problems and diminish the ability to attract and retain talent.

OPD and Greenland did not indicate any changes to the future construction plans for 1.5M SF of biotech space. The first office/R&D phase, which will lead to the creation of 580K SF of office, is expected to begin this year with occupancy planned in 2020-2021. A second phase would include 1M SF of office and R&D.

Residential units were planned for the third and fourth phases and the developer was originally seeking dual zoning for the site to build housing alongside office/R&D.