China's Wanda to soon announce sale of Australia projects -sources (updated)

Wanda Hotel Development

19/01/2018 03:57

* Projects in Sydney and on the Gold Coast for sale 
    * Wanda Hotel shares suspended from trading 
    * Yuhu in exclusive talks to buy the projects - The 
Australian 
 
 (Recasts with planned announcement of sale) 
    By Clare Jim 
    HONG KONG, Jan 19 (Reuters) - Dalian Wanda Group is expected 
to announce the sale of two Australian property projects in the 
coming days, two people with knowledge of the matter said, as 
the Chinese firm looks to lessen financial strains caused by a 
major acquisition spree. 
    China's regulators last year told banks to stop providing 
funding for several of the conglomerate's overseas acquisitions, 
sources have said, prompting a string of asset sales by Wanda, 
whose businesses range from real estate to football and 
cinemas. urn:newsml:reuters.com:*:nL3N1K82KV 
    The two high-end residential and hotel projects under 
development - the One Circular Quay in Sydney and the Jewel 
Resort in Gold Coast, will be sold at around cost, one of the 
people said. 
    The sources declined to be identified as they were not 
authorised to speak about the deal. 
    The Australian newspaper reported on Friday that property 
developer Yuhu, which is backed by Chinese investors, had 
entered into exclusive talks with Wanda to buy the assets in a 
deal that could fetch A$1 billion ($800 million). 
    Shares in Wanda Hotel Development Co Ltd  0169.HK , which 
owns the projects, were put on a trading halt on Friday, pending 
a statement regarding a "very substantial disposal" by the 
company. It gave no further details. 
    An official at the Dalian Wanda Group declined to comment. A 
spokesman for Yuhu said in a text message that the company had 
no knowledge of any such transaction. 
    A sale of the Australian projects would come on the heels of 
Wanda's announcement this week that it had agreed to sell its 
interests in the high-profile London luxury development project, 
One Nine Elms, for 59 million pounds ($81 million).  urn:newsml:reuters.com:*:nL3N1PC1LU 
    Last year, Wanda sold a portfolio of domestic hotels and 
tourism assets, including 13 theme parks, for $9 billion to 
Guangzhou R&F Properties  2777.HK  and Sunac China  1918.HK . 
 
($1 = 1.2477 Australian dollars) 
 
 (Reporting by Clare Jim; Additional reporting by Tom Westbrook 
in Sydney, Donny Kwok in Hong Kong and Matthew Miller in 
Beijing; Editing by Edwina Gibbs) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: WANDA HOTEL SALE/