Chinese conglomerate Wanda Group, the company behind a controversial plan to build a hotel and condos on Wilshire Boulevard, has hit a roadblock in its attempted buyout of Dick Clark Productions.
The part-developer, part-cinema operator is reportedly struggling to seal the deal amid a push by China’s government to stem capital from leaving the country. The push has made it difficult for Chinese investors to transfer funds for foreign deals.
So far, Chinese regulators have delayed the buyout but have not outright denied it approvals, according to the Financial Times.
Wanda agreed to buy Dick Clark Productions in early November, The Real Deal reported.
Funnily enough, the Dick Clark-produced Golden Globes traditionally take place at the nearby Beverly Hilton, owned by Wanda rival Beny Alagem. Alagem failed in a bid to build a 26-story tower next to the Hilton last year. Meanwhile, Wanda triumphed in receiving city council approval for its $1.2 billion One Beverly Hills project, despite Alagem’s opposition.
The Chinese Ministry of Commerce said late last year that it will begin to monitor property and entertainment-related deals going out of China.
Wanda is the largest commercial developer in China but has long been pursuing other business ventures. It acquired Legendary Entertainment for $3.5 billion last year and AMC movie theaters in 2012. [FT] — Cathaleen Chen