- Dalian Wanda Group is in negotiations with potential buyers of its two hotel assets in Australia, as reported by Sina Finance.
- People familiar with the situation have said that it is most likely that Wanda will find a Hong Kong-based buyer.
Why It Matters:
- The two assets are specifically “Circular Quay” which includes a hotel and apartments, with a total value of US$ 1 billion, and “Jewel” resort which is located on the Gold Coast and is worth US$ 900 million. However, the two projects are still under construction.
- Wanda entered the Australian market in 2014 when the company acquired a controlling stake in a real estate development project located on the Gold Coast.
- As SGI reported earlier, Wanda Group had started to sell domestic commercial real estate projects known as “Wanda Plaza” and the company reduced the registered capital of multiple “Wanda Plazas”. Dalian Wanda Commercial Properties (3699.HK) recently sold 77 hotels to R&F (2777.HK) for RMB 19.906 billion, and a 91% stake in 13 travel entertainment real estate projects to Sunac (1918.HK) for RMB 43.844 billion. After these significant deals, the China Banking Regulatory Commission ordered Chinese banks to check the financial risks associated with Dalian Wanda Commercial Properties. As a result, the market believes that the aim of Wanda selling commercial real estate projects is to reduce its debt.