China's Dalian Wanda Group Co. Ltd.'s development partner in a luxury condominium and hotel project in Beverly Hills, Calif., has exited the joint project, Bloomberg News reported, citing Rohan a'Beckett, Wanda Beverly Hills Properties LLC's deputy general manager.
A'Beckett confirmed with the news outlet that Athens Group is already out of the project, adding that the company is undertaking the project's construction without a partner.
Athens COO Jay Newman told Bloomberg that the Phoenix-based developer initially planned to work with Wanda on the One Beverly Hills development until its 2020 launch. Newman added that these services include entitlement modifications for the inclusion of a Wanda hotel, construction, the property's opening, and marketing and sale of the residential units. However, the company only provided services to Wanda through May, according to Newman.
A'Beckett and Newman declined to comment on the reasons for the split, but according to sources with knowledge of the matter, the separation did not stem from China's tightened policy on capital outflow. One of the sources said the work Athens was engaged for within the project was wrapped up in January.
The $1.2 billion One Beverly Hills development project will consist of 193 luxury apartment units and 134 hotel rooms. Property records show that the site, which the project will sit on, is valued at $434.9 million, a little firmer than the price Wanda paid for it in 2014, the Oct. 17 report noted.