As part of a restructuring perhaps tied to Chinese leadership’s desire to curb excessive outbound investments, Wanda Hotel Development, a unit of Chinese conglomerate Dalian Wanda Group, said late Wednesday it would buy US$1.05 billion worth of assets from companies controlled by its chairman, Wang Jianlin.
The Hong Kong-listed company said it would buy hotel operator Wanda Hotel Management (Hong Kong) from Wang’s Dalian Wanda Commercial Properties as well as the entire equity interest in theme park operator Wanda Culture Travel Innovation Group from Wang’s Beijing Wanda Culture Industry Group.
Wanda Hotel said it will also sell its interest in Wanda Properties Investment, Wanda International Real Estate Investment, Wanda Americas Real Estate Investment and Wanda Australia Real Estate to Wang’s Dalian Wanda Commercial.
“Wanda Hotel Development will become a strategic platform as Wanda Group’s Hong Kong-listed company focusing on theme park and hotel operation and management,” Dalian Wanda Group said in a statement.
Reports have suggested that Chinese banks have been told to stop funding outbound deals being made by aggressive developers, including Wanda and other hotel buyers such as HNA Group and Anbang Insurance. China is also cracking down on risky lending before this year’s key Communist Party congress.