Dalian Wanda, China’s largest commercial real estate developer, will sell 76 hotels and majority of its 13 tourism complex projects to Tianjin-based rival Sunac China for RMB63.2 billion (US$9.3 billion).
Sunac China will take over 91 per cent equity and all existing loans of the 13 Wanda Cultural Tourism City projects, most of which are still in their planning stages, although Dalian Wanda will continue to plan, develop and manage the projects.
Visitors pose for photos at theme park in Nanchang Cultural Tourism City
The equity transfer represents RMB29.6 billion, while the sale of the 76 hotels – including the Wanda Realm Beijing – is for RMB33.6 billion.
The deal comes less than a month since Dalian Wanda reportedly became one of several large overseas assets buyers probed by China’s banking regulatory commission.
Wanda’s billionaire owner Wang Jia Lin was quoted to have said that the deal would help trim debt for the recently delisted Dalian Wanda Commercial Properties, without giving a reason for the sale.
In an unusual development, the Wall Street Journal yesterday reported that Dalian Wanda had filed for a RMB29.6 billion loan to help fund Sunac’s purchase.
