Dalian Wanda Group is selling stakes in its real estate projects across the UK, US, China and Australia in a $1bn restructuring that includes its One Nine Elms scheme in Vauxhall, SW8.
The restructuring comes amid speculation that the Chinese government is pressuring companies such as Wanda and Anbang to sell assets they have bought overseas.
According to an announcement to the Hong Kong stock exchange, Wanda Hotel Development Company – a subsidiary of Dalian Wanda – has entered into a framework agreement with Beijing Wanda Culture Industry Group, and Dalian Wanda Commercial Properties “in respect of a possible asset restructuring.”
The two companies are wholly owned by chairman Wang Jianlin.
Under the arrangement, the group will dispose of its entire interests in Wanda Properties Investment, Wanda International Real Estate Investment, Wanda Americas Real Estate Investment and Wanda Australia Real Estate – the subsidiaries through which Wanda holds its global property assets – to Dalian Wanda Commercial.
This includes the group’s One Nine Elms. The exact breakdown announced on the Hong Kong stock exchange was:
- A 60% equity interest in Wanda International Real Estate Investment, the holding company of the group’s project in London
- A 51% equity interest in Wanda Properties Investment, the holding company for the group’s project in Guilin;
- A 60% equity interest in Wanda Americas Real Estate Investment, the holding company of the group’s project in Chicago; and
- A 60% equity interest in Wanda Australia Real Estate, the holding company of the group’s projects in Sydney and the Gold Coast.
It said the consideration for the disposals is expected to be based on the net asset value of the project companies, which is to be agreed based on an independent valuation.
Under the agreement, Wanda Hotel group will also buy the entire equity interest in Wanda Culture Travel Innovation Group from Wanda Culture for a consideration which is provisionally set at RMB 6.3bn (£700m).
Wanda Travel is principally engaged in theme park design, construction and operation management.
It will also buy the entire equity interest in Wanda Hotel Management from Dalian Wanda Commercial for a cash consideration provisionally set at RMB 750m.
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