A Chinese investor pulled out of plans to buy £470 million of London property

New York Weekend Edition /
Aug.August 27, 2017 10:00 AM

Chinese conglomerate Dalian Wanda said Tuesday it was abandoning plans to buy a 470 million pound ($606 million) plot of land in London, as Beijing presses companies to halt overseas acquisitions.

A spokesman for Wanda, controlled by one of China’s richest men Wang Jianlin, confirmed its affiliate, International Real Estate Center, would no longer purchase the four-hectare (10-acre) Nine Elms Square site but did not give more details.

Britain’s St. Modwen Properties said in June that it had reached a deal with its French partner, Vinci, and Wanda for the sale.

St. Modwen Properties issued a statement on Monday saying its joint venture with Vinci had “successfully completed” the sale, but the communique did not name the buyer.

Wanda, a massive group whose holdings range from commercial property to entertainment, sports and theme parks, is among a slew of companies under pressure from Beijing to put the brakes on debt-fuelled overseas investments.

The government laid out new rules on Friday to restrict foreign investments in sports clubs, real estate and entertainment.

Beijing had encouraged such foreign ventures in previous years but the government now worries about growing debt loads that could endanger the economy.

In July Sunac China Holdings announced it would buy 76 hotels and a 91 percent stake in 13 other “cultural and tourism projects” from Dalian Wanda Group in a huge deal valued at 63.2 billion yuan ($9.3 billion).

But in joint statement a week later, the companies said another firm, R&F Properties, would instead buy 77 hotels for 19.9 billion yuan.

Sunac will now only buy a majority stake in the 13 cultural assets, and for a price of 43.8 billion yuan — up from 29.58 billion yuan quoted last week.

It was reported in July authorities plan to squeeze Wang’s conglomerate by cutting off new loans and regulatory approvals for deals, in a punishment for breaching restrictions on overseas investments.

The regulatory retaliation marks a major setback for the company that was among the most aggressive players in a flood of acquisitions around the world by Chinese companies.

Earlier this month the Hong Kong-listed arm of Wanda announced plans to buy more than $1 billion in assets from firms controlled by Wang as part of a massive shake-up at the conglomerate.


Related Articles

arrow_forward_ios
Chen Long with Plenum (LinkedIn, Illustration by The Real Deal)
China approves $44B bailout to finish incomplete developments
China approves $44B bailout to finish incomplete developments
Oceanwide Holding’s Lu Zhiqiang and renderings of 80 South Street (LinkedIn, ATCHAIN)
Mystery buyer pays just $169M for site of Oceanwide’s distressed supertall
Mystery buyer pays just $169M for site of Oceanwide’s distressed supertall
From left: Oceanwide's Lu Zhiqiang, Greenland's Hu Gang, and Vanke Group's Zhu Jiusheng
China’s debt cataclysm threatens US real estate projects
China’s debt cataclysm threatens US real estate projects
JPMorgan Chase's Jamie Dimon with 79 Fifth Ave, Apollo Commercial Real Estate Finance's Stuart Rothstein with 165 East 66th Street, and Bank of China's Liu Liange with 555 West End Avenue (Google Maps, Hanley New York, 555westendave, Getty)
Summer slump: Manhattan’s 10 biggest loans shrivel
Summer slump: Manhattan’s 10 biggest loans shrivel
Chinese homeowners are being censored via social media (Photo Illustration by The Real Deal with Getty Images)
China pushes back as homebuyers protest mortgage issues
China pushes back as homebuyers protest mortgage issues
Evergrande chairman Hui Ka Yan, Shimao Group CEO Hui Wing Mau and Sunac chairman Sun Hongbin (Illustration by The Real Deal with Getty Images)
Evergrande among six Chinese developers booted from Hang Seng Index
Evergrande among six Chinese developers booted from Hang Seng Index
Apartments in exchange for onions and watermelons
Garlic, watermelons help Chinese homebuyers save money
Garlic, watermelons help Chinese homebuyers save money
Parkview’s Paul Rahimian with 1800 Avenue at Port Imperial (LinkedIn, Handel Architects)
Lender plans unusual loan sale on Chinese developer’s troubled NJ project
Lender plans unusual loan sale on Chinese developer’s troubled NJ project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...