Construction on Oceanwide Plaza, one of the biggest real estate development projects in downtown Los Angeles, has stalled in what may be a shortfall in financing from the project’s Chinese owner, it was reported Friday.

The condominium, hotel and retail complex across the street from Staples Center is expected to cost more than $1 billion and be a key part of the flashy entertainment, hotel and residential district emerging along Figueroa Street, the Los Angeles Times reported.

The plaza is being built by Oceanwide Holdings, a Beijing-based publicly traded conglomerate that reported revenue of $2.37 billion in 2017. The company said in a statement Thursday that the hold-up is due to a recapitalization of the project and that work will resume by the middle of next month.

Any halt of a Chinese-backed real estate project, however, is bound to raise concerns that it may be related to Chinese government policies restricting the flow of money out of the country. The policies, put in place in 2016, sent shock waves through real estate circles because China has become a major investor and developer in the U.S.

The shutdown also comes at a time when the FBI is conducting a corruption probe at City Hall that is investigating possible kickbacks and other crimes that might involve foreign real estate developers with downtown building projects.

The Oceanwide development is well underway and was expected to be completed this year. The three towers that are to house more than 500 luxury condos and a Park Hyatt hotel have already reached their peak heights of as much as 55 stories and work was taking place inside the structures, which are still partially exposed to the elements.

The general manager of the city Department of Building and Safety, Frank Bush, said his agency received a call on Friday from Lendlease, the general contractor on the project, saying it was canceling an inspection that had been scheduled for that day.

“They said they were stopping work on the project at this time, and had no further explanation,” Bush said, adding that the shutdown has nothing to do with any inspections or permitting issues involving his agency.

“It doesn’t have anything to do with any corrections we’ve given them or anything like that. It wasn’t at our direction,” he told The Times.

Federal agents have inquired about Oceanwide and other downtown development projects with foreign investors as they seek evidence of possible crimes including bribery, extortion, money laundering and kickbacks that could involve L.A. city officials and development executives, The Times reported.

In a warrant filed last year, federal agents asked Google for information from a Gmail account used by former Deputy Mayor Ray Chan, including records relating to Oceanwide and other development projects in downtown Los Angeles. However, it is unclear whether the FBI had any specific evidence of wrongdoing by Oceanwide or was simply casting a wide net in its investigation, The Times reported.

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