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A Hong Kong-based company planning to develop an Atlantis-themed resort along with two other large hotel and residential projects in West Oahu has attempted to sell all three properties in an attempt to resolve financial difficulties.
The efforts of China Oceanwide Holdings Ltd. increase uncertainty as to whether the three projects, which include three hotels and possibly 3,000 residences on 550 hectares of land on Ko Olina and the neighboring West Kapolei area, will be built as planned, and if so, when and by whom.
Of the three projects, the Atlantis Resort, valued at US $ 1.5 billion, has received the greatest public attention with its application as a future landmark with 1,324 guest rooms and luxury apartments, an aquarium, a water park, spas, restaurants, bars and other elements on 26 hectares attracted by Disney’s Aulani Resort in front of the man-made beach lagoons at Ko Olina Resort & Marina.
Oceanwide also planned the development of two luxury hotels and a luxury condominium on nearby 17 acre beachfront property on Ko Olina, as well as a master-planned community on 514 acres of land immediately east of Ko Olina known as Kapolei West and for up to 2,500. approves homes, golf course, commercial uses, and other things.
The company, which has public shareholders, announced in a financial report last month that a potential sale of all three Hawaiian properties failed in late June after a final agreement on key terms was not reached following a preliminary agreement with an unknown buyer . March.
Oceanwide also said in the same Aug. 25 filing that it is negotiating the possible sale of 17 acres of land in Kapolei. In the submission, the property was not described otherwise, although Ko Olina is part of Kapolei.
A representative from Oceanwide was unavailable for comment.
According to the company’s financial report, the effort to sell real estate in Hawaii resulted from the need to raise cash so Oceanwide can address debt problems and resume construction of a stalled $ 1 billion high-rise project in Los Angeles.
Mike Hamasu, director of research and advice at local commercial real estate company Colliers International, said that given the coronavirus-driven downturn in tourism and an uncertain full recovery in the industry in general, it is not a good time to sell resort properties in Hawaii Economists- Project will take a few years.
However, Hamasu also said that there are many well-capitalized investment firms out there looking for cheap real estate, particularly distressed real estate that is available at emergency sale prices.
“You have a lot of capital in the market looking for opportunity,” he said.
A deal for Oceanwide’s Hawaiian real estate, Hamasu added, could only depend on what price the company is willing to accept.
“I don’t know how challenged Oceanwide is,” he said.
Oceanwide noted in its latest financial report that there could be serious doubts about its ability to sustain itself, despite the fact that its majority shareholder, a China-based conglomerate, has pledged to meet a significant portion of the company’s short-term debt.
Oceanwide entered the Hawaiian market in 2015 as part of a then newly adopted overseas property development strategy that resulted in the acquisitions of West Oahu along with properties in Los Angeles, New York City and Indonesia.
The smaller Ko Olina location was purchased for $ 200 million in 2015. A year later, the company bought the larger Ko Olina site for $ 280 million and then the Kapolei West land for $ 100 million.
Oceanwide said in its most recent filing that it has invested approximately $ 650 million in the three properties to date.
The development for all three locations is still in the “preliminary planning”, according to the submission.
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