Tag: Oceanwide Plaza Downtown Los Angeles

Southern California hospital operator and hotelier Dr. Kali P. Chaudhuri’s KPC Development is looking to join with Lendlease in a bid for downtown Los Angeles’ stalled, mega-development Oceanwide Plaza, federal bankruptcy court documents reveal — but things are far from over. 

KPC would join Lendlease, one-time general contractor for the project, in a credit bid of $470 million.

There is a bigger and all-cash offer on the table: a partnership between an overseas investor and Cityview, helmed by Sean Burton, according to a person familiar with the matter. 

Cityview did not immediately respond to requests for comment. 

Chaudhuri’s company and Lendlease filed an initial purchase agreement for the development located in the heart of downtown, the L.A. Times reported earlier today. It’s generally a credit bid, which was expected, as The Real Deal previously reported. 

KPC comes to the deal through its control of another major Oceanwide creditor, LA Downtown Investment. The company bought LADI’s debt, according to the person familiar. 

A recent agreement indicated LADI, funded by EB-5 investors, is entitled to a $230-million claim, and Lendlease, about $169 million. 

The likelihood of an all-cash offer from a respected Los Angeles developer aside, the court needs to approve the sale, and then the work begins. The unfinished, three tower development covered in graffiti, has been stalled for years after its Beijing-based developer ran out of money after putting more than a billion dollars into vision of a mixed-use project — and another $1 billion is expected to be needed to complete the development, which was set to include office, retail, hotel and residential components. KPC and Lendlease could bid their debt, but they still need money to move it. 

Chaudhuri has been shopping construction loans but hasn’t found a taker, the source said.

A representative for KPC Development did not immediately respond to a request for comment; neither did an attorney for the debtor.

Chaudhuri’s KPC is building a $300-million hotel next to SoFi Stadium in Inglewood. Since the early 2000s, he has had a reputation as a controversial medical entrepreneur after his company, KPC Medical Management, went bankrupt and left hundreds of thousands of patients without care.

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Now that a federal bankruptcy judge approved an intramural battle between lenders on Oceanwide Plaza, creditors are facing a decision: Make their own or joint credit bids and try to finish the project or sell it off in hopes of recouping sunk costs, a person with knowledge of the matter told The Real Deal. 

The decision is imminent, the source said.

The project is estimated to require another $1 billion or more to complete.

The bankruptcy exit agreement recently reached over downtown Los Angeles’ problem project clears the way for a potential deal. The latest framework appears to offer the two major creditors an avenue to either bid the debt they’re owed in exchange for the property or sell for cash. 

Bloomberg previously reported a potential investor is negotiating to buy the property, and the deal hinged on resolving the bankruptcy.

Under the latest agreement, LA Downtown Investment, funded via EB-5 investors, is entitled to a $230-million claim, and Lendlease, the one-time general contractor on the project, is in line for another of about $169 million. Other creditors, including one tied to Lendlease, are also in line for claims, per recent filings.

The mixed-use, two-million square foot development that sits opposite Crypto.com Arena near the LA Live entertainment hub, has been stalled for years since developer China Oceanwide ran out of money after putting more than a billion dollars into vision of a mixed-use megaproject with office, retail, hotel and residential components. The Beijing-based developer, which has since been delisted from the Hong Kong Stock Exchange, filed for Chapter 11 bankruptcy in 2024. Earlier, when the development stalled, China Oceanwide said it would need another $1 billion to complete construction.

Now the bankrupt developer is looking to sell the bedraggled asset off by making a presumptuous pitch about the priorities of the City of Los Angeles and its residents.

““A prompt sale and eventual completion of the project is a major priority for the city and the public at large, particularly with the upcoming 2028 Olympic Games in Los Angeles,” lawyers for Oceanwide Plaza said a court filing last month, calling it a “high-profile civic issue” for the city.

The settlement reached among creditors basically put an end to the millions of dollars being spent on lawyers while lenders sued each other. It outlined who got what and at what interest rate. 

“The settlement agreement puts an immediate stop to this value-destructive litigation, preserving estate assets and allowing the debtor to pivot from endless legal battles to the productive work of selling the project and confirming a plan,” lawyers wrote. 

Representatives for LADI, Lendlease and Oceanwide did not immediately respond to a request for comment

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