Wanda Commercial gets .3 bln backing from internet giants

Updated 2018-01-30 10:26:01

Dalian Wanda Group announced on Monday night that its commercial real estate arm Dalian Wanda Commercial Properties Co has signed a strategic investment agreement with four Chinese investors that would bring Wanda Commercial 34 billion yuan (.3 billion) in investment.

Under the agreement, Tencent Holdings, Suning Holdings Group, JD.com Inc and Sunac China Group would acquire about 14 percent of Wanda Commercial's stakes held by investors after the company's delisting from the Hong Kong Stock Exchange, Wanda Group said in a statement on its website.

The financial backing from the top Chinese e-commerce giants represents a positive development for Wanda Commercial, which has been under heavy pressure after it failed to issue offshore senior notes and its credit ratings were cut amid rising debt concerns over its parent company.

In a separate move to ease debt concerns, Wanda Hotel Development Co said Monday that it has agreed to the sale of its rights and interests in some property projects in Australia and that its Hong Kong-listed shares will resume trading on Tuesday.

In a filing, Wanda Hotel said it had reached an agreement with AWH Investment Group Pty Ltd to sell its interests in two projects in Australia - the Gold Coast project and the Sydney Project - for about A5.04 million (2.5 million) in cash.

The third party also agreed to repay A5.11 million in debt for the two projects, according to the filing, which was sent to the Global Times by the company.

Wanda Hotel said on Tuesday it had applied to resume its share trading, which has been halted since January 19.

Wanda Group has been selling off property assets in the face of rising debt concerns and scrutiny from regulators and lenders.

In 2017, the group's total assets declined by 11.5 percent year-on-year to 700 billion yuan (9.56 billion), of which 93 percent were domestic and 7 percent were overseas, the company said in a work report released on January 21.

Revenue fell by 10.8 percent in 2017 to 227.4 billion yuan, the report said.

Wanda's commercial real estate arm sold a portfolio of hotels and 13 tourism assets in China for billion in July 2016, and it has been seeking to sell some overseas projects, Reuters reported on January 20.

Wanda agreed earlier this month to sell its interests in a London project, One Nine Elms, for million, according to the Reuters report.

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