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Published on : Monday, July 10, 2017
Wanda Group, one of China’s most forceful overseas asset buyers of now, has announced the disposal of the majority of magnate Wang Jianlin’s hotel and tourism portfolio to a rival, in the country’s biggest single property transaction, as it raises funds to repay loans.
Wanda will sell 76 hotels under its eponymous brand, along with 91 per cent equity in 13 theme parks and projects classified as culture and tourism to Sun Hongbin’s Sunac China for 63 billion Yuan (US$9.3 billion).
Along with Anbang Group, Fosun Group and the HNA Group, Wanda was named last month by the China Banking Regulatory Commission for special attention in loans exposure, as the country’s four biggest overseas asset buyers face the equivalent of US$11.5 billion in bonds and loans by the end of 2018.
Liu Feifan, a property analyst at Guotai Junan International said, “Wanda may be feeling the financial pressure, or it won’t need to sell off so many assets. Wanda may badly need funding to support its expansion, but can’t count on rental income.”
With businesses ranging from property to entertainment to financial services, Wanda Group had a 17.9 per cent revenue growth in the first half of 2017 to 134.8 billion Yuan.
Property revenue, including residential sales and rental from shopping malls and hotels, rose 14.2 per cent year-on-year to reach 73.5 billion Yuan in the first half.
Shares of Wanda Hotel Development Co. more than doubled to HK$1.48 on the Hong Kong exchange before closing at HK$0.85.
Tags: Wanda Group