Property maintenance

10 August 2017 By Alec Macfarlane

Chinese tycoon Wang Jianlin, under pressure to delever, just sold $9 bln of hotels and theme parks. Now he’s taking full control of some property projects and selling some businesses to a Hong Kong unit. That would make a delayed mainland listing more appealing to investors.

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Wanda Hotel Development, a Hong Kong-listed arm of Chinese conglomerate Dalian Wanda Group, plans to buy businesses worth more than $1 billion from other units of its parent company, while selling out of four property projects.

Wanda Hotel said it would buy theme-park operator Wanda Culture Travel Innovation Group from Beijing Wanda Culture Industry Group for a provisional 6.3 billion yuan ($945 million), paid either in cash, shares or convertible bonds.

It will also buy hotel operator Wanda Hotel Management (Hong Kong) from Dalian Wanda Commercial Properties for 750 million yuan in cash, it said in a filing to the Hong Kong stock exchange on Aug. 9.

Meanwhile, it will sell its controlling stakes in projects in Guilin, London, Chicago and Australia to Dalian Wanda Commercial for cash, with the prices “based on the net asset value” of the companies.

Wanda Hotel shares soared. By late afternoon in Hong Kong on Aug. 10 they stood 22.4 percent higher at HK$1.42 a share.

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