$1B Oceanwide Center Sale Delayed By Coronavirus
The sale of Oceanwide Center, which is expected to become San Francisco’s second-tallest tower, has been delayed by the coronavirus.
Chinese conglomerate Oceanwide Holdings and compatriot buyer SPF Capital International Limited have agreed to delay the $1B sale of the incomplete project, Oceanwide, citing the coronavirus, disclosed last week.
In a filing with the Shenzhen Stock Exchange, the company attributes a delay in due diligence "to the impact of the COVID-19" and has decided to move its due diligence deadline from Feb. 19 to March 25, The Real Deal reports.
“Through amicable negotiation, both parties signed a First Amendment to the Sale Agreement on Feb. 26, 2020 to adjust the due diligence and delivery period,” the filing states, The Real Deal reports.
Oceanwide Holdings originally announced its sale of the highly anticipated project in January, following months of stopped construction on the two-tower project’s smaller building at 512 Mission St. Since then, the coronavirus, which originated in China late last year, has led to over 3,100 deaths from over 90,000 cases, the vast majority of which have been in mainland China.
Oceanwide began construction in 2016 on its Transbay District mixed-use project, which includes a 910-foot skyscraper planned for 50 First St. All told, designs call for 1M SF of office space, 265 residential units and a 169-room Waldorf Astoria hotel, with construction led by general contractors Swinerton and Webcor.
By November, the developer had put the Transbay project, along with the three-tower Oceanwide Plaza project in LA and a New York site, all on the market.
Oceanwide Holdings did not immediately respond to a request for comment on the delayed sale of Oceanwide Center or the status of its other projects.
In addition to delayed due diligence, a new deadline for delivery of March 31 has also been set for the transaction, moved back from March 5, according to The Real Deal, which first reported Oceanwide Holdings’ recent public filing. Oceanwide has disclosed that it expects a loss of $276M on the Transbay sale.