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  #781  
Old Posted Jan 29, 2019, 2:29 AM
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Some more information on the situation with Oceanwide Holdings:

Quote:
Chinese developer behind one of San Francisco's largest projects stalls Los Angeles towers
By Blanca Torres – Reporter, San Francisco Business Times
Jan 28, 2019, 11:20am PST Updated 5 hours ago

Some real estate and financial analysts have argued that the developer is overleveraged. Oceanwide Holdings is a publicly traded Chinese conglomerate with various subsidiaries under the parent company China Oceanwide.

Amy Jalili, a spokeswoman for Oceanwide Center, said that construction is continuing and that the San Francisco project should be ready for the foundation to be poured this summer . . . .

The company jumped into the U.S. development market with Oceanwide Plaza and later bought sites for Oceanwide Center in San Francisco as well as a 1,400-room hotel on the island of Oahu in Hawaii, and two high-rise sites in New York City. The Hawaii and New York sites have yet to start construction . . . .

Hindenburg Research, a financial research firm, issued a report in November analyzing the firm’s recent acquisition of Chinese insurance company Genworth. The report states that Oceanwide had debts of $31.165 billion in 2017, compared with $20 billion in 2015 and $8.95 billion in 2013, while reporting $3.415 billion in revenue in 2017. The company also listed $11.4 billion in development costs as assets.

Nathan Anderson, head of Hindenburg Research, said Oceanwide depends on regularly securing credit. With China’s credit markets tightening, that could prove challenging in the future.

S&P Global Ratings last year gave Oceanwide a CCC+ rating, below investment grade. Last week, S&P said Oceanwide’s agreement to sell four land sites in Beijing and Shanghai “will provide the company with much needed liquidity and lower its debt burden. We believe this sale is a meaningful first step for Oceanwide toward a capital structure that can be sustained over the long term.”

“In an effort to prioritize construction activity, and while we restructure capital for the project, interior construction at Oceanwide Plaza is temporarily on hold,” Oceanwide said in its statement, according to the Los Angeles Times. “With more than $1 billion of equity already invested in Oceanwide Plaza, we look forward to investing more capital into the property and together with Lendlease, remain committed to building this landmark project for LA” . . . .
https://www.bizjournals.com/sanfranc...t-housing.html

I interpret all that to be saying that Oceanwide Holdings is, indeed, over-leveraged and that they are attempting to correct the situation by selling the Beijing/Shanghai properties. Once that is accomplished (or perhaps once they secure bridge financing in anticipation of that), they will resume work in LA. Meanwhile there seems to be no indication that they lack enough cash to proceed in San Francisco (at least none of the Americans involved with the project, including architect Jeffrey Heller, will say there's to be any SF slowdown). Perhaps since the LA project is topped out they just consider it a more appropriate time to suspend the work there.
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  #782  
Old Posted Jan 29, 2019, 11:07 AM
CaliNative CaliNative is online now
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Quote:
Originally Posted by Pedestrian View Post
Some more information on the situation with Oceanwide Holdings:


https://www.bizjournals.com/sanfranc...t-housing.html

I interpret all that to be saying that Oceanwide Holdings is, indeed, over-leveraged and that they are attempting to correct the situation by selling the Beijing/Shanghai properties. Once that is accomplished (or perhaps once they secure bridge financing in anticipation of that), they will resume work in LA. Meanwhile there seems to be no indication that they lack enough cash to proceed in San Francisco (at least none of the Americans involved with the project, including architect Jeffrey Heller, will say there's to be any SF slowdown). Perhaps since the LA project is topped out they just consider it a more appropriate time to suspend the work there.
How much progress has been made on the SF Oceanwide towers? Are they still in the foundation stage? The L.A. towers are topped out, and some interior work has been done, so the majority of the costs are probably behind them. On the other hand, the fact that Waldorf Astoria/Hilton are end tennants in SF Oceanwide may help out. Eventually, I expect money will be found to complete both the LA & SF projects. If not by the Chinese group, then by someone else. It may take a bit longer.
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  #783  
Old Posted Jan 29, 2019, 4:57 PM
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Quote:
Originally Posted by CaliNative View Post
How much progress has been made on the SF Oceanwide towers? Are they still in the foundation stage? The L.A. towers are topped out, and some interior work has been done, so the majority of the costs are probably behind them. On the other hand, the fact that Waldorf Astoria/Hilton are end tennants in SF Oceanwide may help out. Eventually, I expect money will be found to complete both the LA & SF projects. If not by the Chinese group, then by someone else. It may take a bit longer.
They are excavating. As the article above says, the main foundation pours should be this summer.

Read what I wrote again. It appears they already have a plan to get the money for both projects: Selling land in Beijing and Shanghai.

It seems as if it would be less disruptive to suspend interior work than to halt excavation—excavation requires expensive-to-idle usually-rented equipment among other considerations—and that’s what they did but the needed money seems to be coming.
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  #784  
Old Posted Jan 30, 2019, 4:00 AM
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things were quiet on-site on Sunday, but lights were on:

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  #785  
Old Posted Jan 31, 2019, 8:18 AM
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Quote:
Originally Posted by Pedestrian View Post
They are excavating. As the article above says, the main foundation pours should be this summer.
Kinda crazy since that'll make it 2.5 yrs after the Dec '16 groundbreaking ceremony.
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  #786  
Old Posted Jan 31, 2019, 8:49 AM
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Originally Posted by edwards View Post
Kinda crazy since that'll make it 2.5 yrs after the Dec '16 groundbreaking ceremony.
Foundation work can take a while. Once that is done, it should rise quickly. Patience.

Last edited by CaliNative; Jan 31, 2019 at 9:18 AM.
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  #787  
Old Posted Jan 31, 2019, 5:42 PM
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^^^
Yes, remember that Salesforce and 500 Folsom flew up in no time after they got above grade.

Also to be fair they didn't actually start construction until like May of 2017. But yeah record-breaking deep foundations take a while!
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  #788  
Old Posted Jan 31, 2019, 6:03 PM
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Quote:
Originally Posted by edwards View Post
Kinda crazy since that'll make it 2.5 yrs after the Dec '16 groundbreaking ceremony.
With its two towers, this is a very complicated structure and with its height it requires a very solid foundation. These forums were full of the exact same sorts of comments from many of the same people concerning 181 Fremont. Digging/pouring caissons to bedrock in San Francisco simply takes time. There is nothing unusual about the time it's taking on this project, considering its height and complexity, as there wasn't for 181 Fremont (or the several towers on Folsom for that matter).
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  #789  
Old Posted Jan 31, 2019, 6:39 PM
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Indeed. And we certainly don't want another Millennium Tower fiasco!
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  #790  
Old Posted Feb 11, 2019, 12:45 AM
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I read that it now won’t be finished until 2023. That sucks!
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  #791  
Old Posted Feb 11, 2019, 4:40 AM
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Quote:
Originally Posted by SFBuildings888 View Post
I read that it now won’t be finished until 2023. That sucks!
Patience is key
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  #792  
Old Posted Feb 11, 2019, 10:15 AM
SFBuildings888 SFBuildings888 is offline
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Originally Posted by gillynova View Post
Patience is key
Well, I got none.
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  #793  
Old Posted Feb 11, 2019, 6:51 PM
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Quote:
Originally Posted by SFBuildings888 View Post
I read that it now won’t be finished until 2023. That sucks!
That's not *too* bad. The impact on SF skyline will be huge.
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  #794  
Old Posted Feb 12, 2019, 1:14 AM
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Oceanwide is looking to sell their NYC holding. They'll finish their LA project for sure, but has there been any murmurs of this project being put up for sale?
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  #795  
Old Posted Feb 12, 2019, 2:14 AM
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Quote:
Originally Posted by Hudson11 View Post
Oceanwide is looking to sell their NYC holding. They'll finish their LA project for sure, but has there been any murmurs of this project being put up for sale?
No. They are selling properties in Shanghai and Beijing on which they have not begun construction (please read post 781 above). You are saying NY as well (also not yet under construction). The surmise is that they are doing this to firm up their balance sheet in order to keep building where they are building: LA and San Francisco. The SF property has now been under contruction for going on 2 years and the hard part is nearly done (pouring of caissons, excavation. The expectation is they will pour the foundation mats this summer and begin building upward. Recall they already have a contract with Waldorf-Astoria for much of the shorter tower which is expected to be finished a year earlier. And the taller tower is the only office tower currently under construction in SF so there should be serious demand for space in it when they are ready to lease it up (it won't open for 4 years).
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  #796  
Old Posted Feb 12, 2019, 3:11 AM
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Credit: Sergio Ruiz, on Flickr
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