Beijing-based China Oceanwide Holdings is continuing to divest its U.S. assets, this time striking a deal to sell one of its projects in Hawaii.
Oceanwide has reached an agreement to sell its 44-acre Ko Olina project on Oahu for $134 million, according to a financial filing with the Hong Kong stock exchange.
Oceanwide plans to build two hotels, residential condominiums and an Atlantis-branded resort with 800 rooms and 524 branded residences in Ko Olina, according to its 2022 annual report.
Oceanwide had spent $527 million on the development by the end of last year, but construction had yet to begin.
Tower Development, a Hawaiian real estate development company run by Ed Bushor, has agreed to buy the site, the documents said.
Under the agreement, Oceanwide will waive its right to buy back the property after a Hawaii court ruled that Oceanwide could not trigger the option.
Oceanwide has already sold another planned Hawaii project. In December, the company sold the Kapolei West development for $92.9 million, resulting in a $26 million loss for Oceanwide, documents show.
Oceanwide said in its annual report that proceeds from the sale would not cover all debts related to the property.
Oceanwide said in its 2022 annual report that “the company expects to settle its debts to noteholders upon disposal of the remaining parcels of the Hawaii project.”
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The firm still has one project in Los Angeles — the unfinished Oceanwide Plaza tower in downtown Los Angeles. Oceanwide defaulted on an EB-5 loan related to the development in June and owed the lender $157.4 million as of January.
Oceanwide said in the filing that more than $1.2 billion will be needed to complete construction of the project.
