ChinaOceanwide Holdings and LendleaseCorp. Ltd.'s U.S. units signed an estimated US$814 millionconstruction contract for a mixed-use project in Los Angeles, subject to adjustments.
Oceanwide Plaza LLC awarded the contract to Lend Lease (US)Construction Inc. for the construction of residential properties, a hotel andshopping centers in a complex that will have a total gross area ofapproximately 138,249.11 square meters.
Oceanwide Plaza also inked an approximately US$11.4 millionpre-construction deal with Lend Lease (US) for the period between Nov. 11,2014, and March 31. The contract is for shoring and excavation activities,among others, for the project.
China Oceanwide plans to use internal resources and/or otherequity/debt financing to pay the contractor. The company had obtained a US$325million loan in 2015, secured by a deed of trust covering the project.
The company expects the project to be completed no later thanJan. 22, 2019, according to a filing.
China Oceanwide's board cited the positive real estatedevelopment market and continually growing hotel sector in L.A. as some ofreasons for pursuing the mixed-use development.
Further, it chose Lend Lease (US) as the contractor due toits previous involvement in similar construction projects and its affiliationwith Lendlease, among other factors.