Wanda Group to sell hotels, tourism projects and land to Sunac for $9.3B

Deal includes 76 hotels and majority stake of 13 projects

Los Angeles /
Jul.July 10, 2017 04:00 PM

Wang Jianlin, the founder of Wanda Group, once said he would create a tourism empire so big it would eclipse Walt Disney Co. But it looks like Mickey Mouse might have the last laugh.

China’s second-richest man will sell $9.3 billion worth of Wanda Group’s hotels, land and tourism projects to Sunac China Holdings in China’s biggest property deal. Both sides are planning to sign an agreement before July 31, Bloomberg reported.

The purchase includes 76 of Wanda’s hotels and a 91 percent stake in 13 of its cultural and tourism projects, Bloomberg reported.

The “Wanda City” projects, giant developments with theme parks and lodgings, make up about a third of the sale. It’s unclear which properties other will be passed off to Sunac.

A Beverly Hills subsidiary of Wanda Group is currently developing One Beverly Hills at 9900 Wilshire Boulevard. The project was caught in a two-year battle with developer Beny Alagem, but emerged victorious when the Beverly Hills City Council voted in favor of moving the $1.2 billion project forward in November 2016.

The Sunac deal will help lower Wanda’s debt. It represents a company shift away from developing properties and towards a focus on collecting rent, Bloomberg reported. The sale could also help fund Wanda’s expansion into the entertainment business, which includes its acquisition of Legendary Entertainment and AMC Entertainment Holdings Inc., Bloomberg reported. [Bloomberg]Subrina Hudson


Related Articles

arrow_forward_ios
Renderings of One Beverly Hills and Beny Alagem. (One Beverly Hills, Getty)
Beny Alagem’s $2B Beverly Hills project gets go-ahead
Beny Alagem’s $2B Beverly Hills project gets go-ahead
The San Pedro Fish Market is one of the top-grossing restaurants in the U.S. (Getty, Facebook via San Pedro Fish Market and Restaurant / Photo Illustration by Alison Bushor for The Real Deal)
San Pedro Fish Market plans new “supersize” restaurant
San Pedro Fish Market plans new “supersize” restaurant
The Chateau Marmont (Getty) and protest signs (Unite Here Local 11)
Chateau Marmont workers say iconic West Hollywood hotel misused rescue funds
Chateau Marmont workers say iconic West Hollywood hotel misused rescue funds
Small Business Administration administrator Isabel Guzman (Getty, iStock)
Starved for relief: Restaurants seek $76B, far more than budgeted
Starved for relief: Restaurants seek $76B, far more than budgeted
Goodman CEO Greg Goodman and a rendering of the facility. (Goodman)
Goodman’s massive logistics center will target e-commerce tenants
Goodman’s massive logistics center will target e-commerce tenants
California is waiting to adopt the CDC maskless decision. (Getty)
California still says mask up at office, for now
California still says mask up at office, for now
Hudson Pacific Properties CEO Victor Coleman with 3400 Hillview and 3176 Porter (Getty, HPP)
Hudson Pacific posts profit after 2 straight quarters of losses
Hudson Pacific posts profit after 2 straight quarters of losses
Mariposa on 3rd
CGI Strategies secures $42M loan on Koreatown apartment complex
CGI Strategies secures $42M loan on Koreatown apartment complex
arrow_forward_ios

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

Loading...