Chinese conglomerate Dalian Wanda sells Australian real estate projects
Chinese conglomerate Dalian Wanda has sold its two real estate projects in Australia, the twin hotel and apartment towers in Circular Quay in Sydney CBD and the mixed use hotel/apartment project Jewel on the Gold Coast.
It is understood the price agreed for the sale was just over $1 billion.
Dalian Wanda, which has been selling its international assets after pressure from Beijing to shed its overseas holdings and corresponding debt, signed a sale exchange contract with a private buyer in Hong Kong on January 18.
The group, headed by Chinese billionaire Wang Jianlin, told the Hong Kong Exchange that it had disposed the “entire issued share capital of its wholly-owned subsidiary which owns the rights and interests in certain property projects in Australia”.
A further announcement regarding the disposal is being prepared while the stock remains in a trading halt.
Both projects, which are still under construction, add up to an end value of about $2 billion.
The sale of the assets also meant Dalian Wanda’s minority partner in the Jewel project, Chinese developer Ridong, has sold out its share to the new buyer.
This follows Dalian Wanda’s sale of its interests in one of the largest luxury residential projects under development in London, the One Nine Elms project on the south bank of London’s River Thames for about £59 million ($102 million) last week.
It is understood Guangzhou’s R&F Properties was the buyer.
R&F had previously purchased 77 Wanda hotels for $US3 billion ($3.7 billion), stepping in to ease financing for the conglomerate’s tourism and theme park projects.
The sale of its tourism assets in 2017 led to a 10.8 per cent decrease in its revenue for the year.
Altogether, the group has sold out of more than $US9 billion ($11.3 billion) in assets.
