CHICAGO | St. Regis Chicago (Vista) | 1,191 FT | 101 FLOORS

[KWillChicago]

Also on the webcam I noticed Mchugh has some blue equipment on a flatbed on upper wacker. Could this possibly be crane assembly for Gems?

[marothisu]

Originally Posted by kolchak

I think he meant that in China there are passages under the roadways that are less dark and scary - not exactly the case with lower Wacker etc.

Yes, that's exactly what I meant. Thanks for clarifying my obvious point to others.

[BVictor1]

Originally Posted by KWillChicago

Also on the webcam I noticed Mchugh has some blue equipment on a flatbed on upper wacker. Could this possibly be crane assembly for Gems?

McHugh isn't building GEMS, I think that's Power Cos.

[kolchak]

Originally Posted by marothisu

Yes, that's exactly what I meant. Thanks for clarifying my obvious point to others.

I was just clarifying it for the urban politician who's reply to your post was:
"Chicago was building multi decked roads when China was still in diapers"

[marothisu]

Originally Posted by kolchak

I was just clarifying it for the urban politician who's reply to your post was:
"Chicago was building multi decked roads when China was still in diapers"

Oh I know - I just don't know how anybody could take "This place has areas with underpasses that aren't scary on purpose" and turn it into "This place was building underpasses first!"

[sox102]

Originally Posted by BVictor1

McHugh isn't building GEMS, I think that's Power Cos.

Correct. Power is building GEMS. The company I work for has been awarded the curtain wall.

[Kngkyle]

Looks like Vista is for sale....

Wanda wants US$5b from single buyer for five offshore assets as China reins in investments abroad

Potential investors have been approached by representatives of Wanda looking to sell all five projects in one go, according to two people familiar with the matter, who did not wish to be identified.

“They are looking for one buyer who can snap up five development projects in five cities,” said one of the sources.

“That will be a big investment. But basically they intend not to sell the assets at below cost, which is about US$5 billion.”

In the US, Wanda plans to sell its Vista Tower, which will be Chicago’s third-tallest building when it is completed in 2020, and a US$1.2 billion luxury condominium and hotel complex near the corner of Wilshire and Santa Monica boulevards in Beverly Hills, California.


http://www.scmp.com/business/compani...ts-china-reins

[kolchak]

I wonder how the sale of this building might affect construction...
It was crazy busy on the site today




Model showing underpass -

[KWillChicago]

They already have all the proper financing so construction shouldnt be affected, right? So this means it wont go by the name Vista in 2020 then after the purchase?

[left of center]

I wouldn't worry about this too much. The Wanda Group is one of many Chinese based conglomerates that have come under the Chinese authority's magnifying glass for some time now.

The government is trying to slow the outflow of capital as the country's growth rate has slowed, and curbing the foreign investment of its mega corporations is one of the capital controls the authorities have initiated.

Assuming Vista's financing is rock solid, I don't think they will have a problem unloading it to another mega developer.

[aaron38]

This is how the trade imbalance rebalances itself.

[kolchak]

Shangri La, Mandarin Oriental... Wanda - for Chicago not a good track record with four star East Asian luxury hotel brands.

[sentinel]

Originally Posted by kolchak

Shangri La, Mandarin Oriental... Wanda - for Chicago not a good track record with four star East Asian luxury hotel brands.

Sigh....apples to oranges, friend.

Let's break it down: while Shangri-la might seem like the closest, most accurate comparison, it's not:

- $700 million in financing was secured on June 16, 2017, at which point, the head of Magellan stated that "35% of condo units were pre-sold" (too late to find link now, will edit later on Sat), which means that of the 406 or so condo units, at least 140 have put deposits down...and that number has only gone up since June. Of the supposed $900 million budget, Magellan can easily finance the difference (after financing from Ping-An bank's construction loan and what condo units have already pre-sold). Magellan has a solid reputation unlike the developer for the doomed Shangri-la and they are very experienced...I mean, they completed the Aqua during the recession, so they deserve some credit..totally different environment now (even though that can change on a dime, but I digress).

- this beast is already under construction, 18-20 floors and counting, (from LL Wacker.

- if Wanda does sell then the hotel would be the potential Achilles heel.... But it won't be they be because I guarantee there is a contractual obligation on their part to do do something with the hotel; they sell it to another owner/operator at a potential loss, or they will have to cough up a considerable chunk of change to Magellan. In 2006, SHR purchased the Aqua hotel space for a large premium (it was supposed to be an extension of the Fairmont; I worked on it). While the hotel was under construction in 2008, the economy tanked and the hotel was mothballed. SHR eventually sold the hotel portion back to Magellan at a loss...who then sold it to the owner of what is now the Radisson Blu for more money, making another profit. My point is, the same thing could happen here. Another 5 star flag can take over, like the St Regis or for poetic justice, the Mandarin or Shangri-la.

I have faith in Magellan, they have already invested way too much in this, and it's a marquee project that they never shortchange.

[kolchak]

Originally Posted by sentinel

Sigh....apples to oranges, friend.

Let's break it down: while Shangri-la might seem like the closest, most accurate comparison, it's not:

- $700 million in financing was secured on June 16, 2017, at which point, the head of Magellan stated that "35% of condo units were pre-sold" (too late to find link now, will edit later on Sat), which means that of the 406 or so condo units, at least 140 have put deposits down...and that number has only gone up since June. Of the supposed $900 million budget, Magellan can easily finance the difference (after financing from Ping-An bank's construction loan and what condo units have already pre-sold). Magellan has a solid reputation unlike the developer for the doomed Shangri-la and they are very experienced...I mean, they completed the Aqua during the recession, so they deserve some credit..totally different environment now (even though that can change on a dime, but I digress).

- this beast is already under construction, 18-20 floors and counting, (from LL Wacker.

- if Wanda does sell then the hotel would be the potential Achilles heel.... But it won't be they be because I guarantee there is a contractual obligation on their part to do do something with the hotel; they sell it to another owner/operator at a potential loss, or they will have to cough up a considerable chunk of change to Magellan. In 2006, SHR purchased the Aqua hotel space for a large premium (it was supposed to be an extension of the Fairmont; I worked on it). While the hotel was under construction in 2008, the economy tanked and the hotel was mothballed. SHR eventually sold the hotel portion back to Magellan at a loss...who then sold it to the owner of what is now the Radisson Blu for more money, making another profit. My point is, the same thing could happen here. Another 5 star flag can take over, like the St Regis or for poetic justice, the Mandarin or Shangri-la.

I have faith in Magellan, they have already invested way too much in this, and it's a marquee project that they never shortchange.

Right. I understand the building may get built regardless of whether Wanda sells the project - but then the chances are nil that this will be a Wanda hotel. It will be something but also likely not Mandarin Oriental (they have very specific designs for their hotels) or Shangri-La. I'm just not sure a premier Pacific-Asian hotel brand fits with the Chicago market. I'd love to be proven wrong - but I think if this development is sold all bets are off.

[sentinel]

^And that's totally ok..who cares? There are plenty of non-Asian luxury brands that would be more than happy to fill the void if Wanda bails, and can provide something as equally extravagant. The U.S. is Wanda's market to lose, but no big loss for Chicago. What's important (to me) is that the building is completed, and it will be.

[VKChaz]

Originally Posted by sentinel

^And that's totally ok..who cares? There are plenty of non-Asian luxury brands that would be more than happy to fill the void if Wanda bails, and can provide something as equally extravagant. The U.S. is Wanda's market to lose, but no big loss for Chicago. What's important (to me) is that the building is completed, and it will be.

The thinking may be that a hotel brand like Wanda would generate travel and interest from the Chinese market.

[10023]

From the brief article posted, I don’t see anything to indicate that they intend to sell this project before construction is complete. And that would be the right approach - finish construction, remove the development risk, and then sell the finished asset at a profit.

Originally Posted by KWillChicago

They already have all the proper financing so construction shouldnt be affected, right? So this means it wont go by the name Vista in 2020 then after the purchase?

I don’t think the name Vista has anything to do with the Wanda Group.

[the urban politician]

This thing is safe because Wanda, through one of his entities, still has a contractual obligation to it. No matter what the Chinese Government says, he cannot simply walk away without facing huge financial retribution.

He is simply being pressured to sell his stake in it. So either sell to another entity that takes over their equity, or stay in the project. But if he stays in, why wouldn’t it still be a Vista Hotel? I don’t see any indication that the Vista brand is being forced to disappear

[marothisu]

My girlfriend says that Wanda Hotels aren't really super famous in China to the average person - the malls are though.

[sentinel]

Originally Posted by VKChaz

The thinking may be that a hotel brand like Wanda would generate travel and interest from the Chinese market.

I dunno, I'm doubtful that would be the driving factor. Nouveau riche Chinese from the mainland who travel abroad and specifically to the United States are perhaps more apt to indulge in Western luxury goods, even for 5 star hotels. If they wanted to stay at a Wanda hotel, better to stay at one in Shenzhen than Chicago. The Langham, Ritz Carlton, Four Seasons, Waldorf would probably be at the top of that list for Chicago from Chinese travelers with money.