China's Wanda sells interests in high-profile London property project (updated)

C C Land Holdings

17/01/2018 05:45

* Sales is latest asset disposal by a conglomerate under 
strain 
    * Sale value is roughly $81 mln, buyer to also repay debt 
    * Earlier plan had called for sale within the Wanda group 
 
 (Recasts and writes through with details of asset sales) 
    By Clare Jim and Donny Kwok 
    HONG KONG, Jan 17 (Reuters) - Dalian Wanda Group has agreed 
to sell its interests in the high-profile London luxury 
development project, One Nine Elms, for 59 million pounds ($81 
million), the latest in a string of asset sales that underscore 
financial strains hitting the Chinese conglomerate. 
    The conglomerate, which has businesses that range from real 
estate to football and cinemas, had initially said it wanted to 
transfer ownership of some its overseas assets to its holding 
company as part of a restructuring, keeping them within the 
group.  
    But the sale has instead gone to a unidentified third party. 
Bloomberg news, citing people with knowledge of the matter, said 
the buyer was Guangzhou R&F Properties  2777.HK , a firm that 
has also stepped up to purchase other Wanda property assets. 
    Wanda Hotel Development Co Ltd  0169.HK  said in a statement 
it is selling its 60 percent stake in a company that owns the 
high-profile One Nine Elms project in London for 35.61 million 
pounds ($49 million). The buyer has also agreed to repay 159.5 
million pounds in debt.  
    A separate Wanda firm, Wanda Commercial Properties (Hong 
Kong) Co Ltd, is also selling the remaining 40 percent stake in 
the property project in southwest London at the same terms.  
    R&F declined to comment on whether it was the buyer. 
    Last year, Chinese regulators told banks to stop providing 
funding for several of Wanda's overseas acquisitions as Beijing 
looks to curb what it sees as irrational spending by some major 
domestic conglomerates, sources have said.  urn:newsml:reuters.com:*:nL3N1K82KV 
    Shortly after, Wanda sold a portfolio of domestic hotels and 
tourism assets, including 13 theme parks, for $9 billion to R&F 
and Sunac China  1918.HK . 
    Wanda is also considering a Hong Kong listing for its sports 
assets as part of efforts to rationalise its portfolio that 
could also include other sales, according to people familiar 
with the situation.  urn:newsml:reuters.com:*:nL4N1OZ1P3 
    Other flagship overseas developments - in Chicago, Los 
Angeles, Sydney and Australia's Gold Coast - are also available 
for sale, according to one source.  urn:newsml:reuters.com:*:nL4N1OZ1P3 
    Responding to a local online media report that questioned 
the group's financial health, Wanda last month said its 2017 
revenues had surpassed 200 billion yuan ($30 billion) and it had 
200 billion yuan in cash.  urn:newsml:reuters.com:*:nL4N1OE3C4 
    Wanda bought the property in Nine Elms Lane on the south 
bank of London's River Thames in 2013 to redevelop it into a 
hotel, residential, office and retail complex. 
    Last year it dropped plans to purchase a neighbouring 
property, Nine Elms Square which was bought instead by R&F and 
CC Land Holdings Ltd  1224.HK .       
    Shares of Wanda Hotel surged on Wednesday, trading 5 percent 
higher in afternoon trade. It said it would use the sales 
proceeds to repay loans and interest, and to finance other 
existing projects. 
  
  
($1 = 7.8237 Hong Kong dollars)($1 = 0.7241 pounds) 
 
 (Reporting by Donny Kwok and Clare Jim; Additional reporting by 
Miyoung Kim; Editing by Edwina Gibbs) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: WANDA HOTEL LONDON PROPERTY/