Dalian Wanda, under pressure to pay off debt, is rapidly shedding real estate

The RE and entertainment giant is struggling with China's restriction on loans

Aug.August 01, 2017 05:00 PM
Founder and chairman of Dalian Wanda Group, Wang Jianlin (credit: Getty Images, Wanda)

Things were looking rosy for Dalian Wanda Group just a year ago, as the Chinese mega-company expanded its presence overseas.

In recent years, it bought AMC Entertainment, the world’s largest operator of movie theaters; purchased the movie studio Legendary Entertainment; and began to develop, through an L.A.-based subsidiary, a $1.2 billion condo and hotel project in Beverly Hills.

But the Chinese government’s new policies on overseas investment and heavy borrowing have hampered the real estate and entertainment conglomerate, which has relied heavily on loans from state-controlled banks. As a result of new pressures to pay off its debt, the company is rapidly shedding real estate holdings in its home country.

Wang Jianlin, Dalian Wanda’s chairman, sold 13 theme parks in various stages of development to Sunac, a Tianjin-based company, for $6.5 billion in July, The New York Times reported. The company also reached a deal with R &F Properties from Guangzhou in the same month, offloading 77 hotels for merely $3 billion.

Last year, Wanda shuttered its Movie Park in Wuhan, only 19 months after its opening, due to a bleak attendance rate. The company’s supposedly “seven star” luxury hotel in Wuhan now charges as low as $160 a night — and still struggles to find customers.

Wanda is now changing its business strategies from a focus on development to a focus on managing malls and theme parks for others in exchange for 30 percent of investors’ revenue.

Wanda still owns over 180 malls across China. [NYT] – Naiwen Tian

Related Articles

From left: Saeed Nourmand, Michael Nourmand, Grant King and Richard Heyman

Relevant Group sues Nourmand & Associates’ founder, alleging extortion over hotel projects

Centennial founder and CEO Steven Levin with a rendering of the project

Centennial Real Estate approved for sprawling $300M mixed-use village

Apartment complex at 1435 Stanley Avenue and Raintree Partners CEO Jeffrey Allen (Credit: Apartment Finder)

Raintree Partners spends $79M on Glendale multifamily portfolio

LA Mayor Eric Garcetti

Down goes Measure EE: Property tax referendum routed at polls

CIM Group Founders, Shaul Kuba, Richard Ressler, and Avi Shemesh and 4750 Wilshire Boulevard (Credit: Google Maps)

CIM Group lists part of its Miracle Mile office campus

Arman Gabay and The Springs shopping center in Palm Springs, part of the 14-property portfolio

Charles Co. secures $215M refi for retail portfolio

Joon Choi, principal at Harbor Associates, and 2400 Conejo Spectrum Street (Credit: Google Maps)

Harbor Associates leases up then sells off its Thousand Oaks office park

9300 Wilshire Boulevard

Land under historic Beverly Hills office building sells for $25M