Wang Jianlin sells American five-star hotel! Wanda empties all overseas real estate projects

category:Finance
 Wang Jianlin sells American five-star hotel! Wanda empties all overseas real estate projects


A person close to Wanda told China Securities News that previously, Wanda Groups overseas business has been developing this platform in Wanda Hotel, and in recent years, it has begun to compress and sell its overseas business. The Chicago property project sold this time is still under construction, belonging to the category of heavy assets. In the future, Wanda hotel will focus on the development of hotel management, hotel design and construction, and operate in the form of light assets.

The sale is over

According to the information disclosed by Wanda hotel development, the total planned building area of Chicago property project is about 176000 square meters. It is planned to build a five-star hotel with a height of 361 meters, which will become the third tallest building in Chicago.

According to the announcement of Wanda hotel development on the evening of November 25, when the sale was completed, the principal amount of inter company loan was about 281 million US dollars, and about 349.9 million US dollars had been paid to the seller. The deferred amount has been increased from the deferred amount to the first batch of US $104 million.

At the beginning of the announcement of the sale of the Chicago property project, the company pointed out that the sale was expected to generate revenue of about HK $94 million (before tax). But in the announcement on the evening of November 25, the project revenue was not mentioned.

As of December 31, 2019, the target companys net asset value without audit was about HK $2193 million. In addition, under the agreement, the US $2.245 billion loan owed by parcel CLLC to Wanda Chicago real estate, LLC, will also be repaid to the seller. After the completion of the transaction, the target company will no longer be a subsidiary of the company and its financial performance will no longer be included in the group financial statements.

Since then, the company has issued a number of announcements to disclose the progress of the asset sale. On October 16, Wanda hotel development announced that the general meeting of shareholders had passed a resolution on the sale of Chicago property project.

Improving the financial situation

Wanda hotel development believes that the current sale of Chicago project realization is a good opportunity. As the Chicago project is still under construction, the sale will help reduce the groups current and future debt and strengthen the groups financial position. The main business of Wanda hotel is property development, property investment and management, hotel operation and management, hotel design and construction management services. The sale of the Chicago project is consistent with the companys strategy of deleveraging and improving cash flow.

According to public information, Wanda began to carry out overseas real estate business layout in 2013. In the same year, Wanda invested 700 million pounds to win the one nine elms skyscraper in London, UK. In 2014, we invested in Chicago project and one Beverly Hills project in Los Angeles respectively. In 2015, it invested another $1 billion to film the Circular Quay apartment and hotel project in Sydney, and spent a $971 million to win the gold coast project in Australia.

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After that, Wandas debt ratio remained high. In order to prevent the break of capital chain, Wanda decided to sell its assets substantially. Wang Jianlin made it clear at the Wanda annual meeting on January 20, 2018 that Wanda should gradually pay off all overseas interest bearing liabilities. Wanda has invested in a number of overseas projects in the past few years, and now we have decided to pay off overseas debts. If we sell half of our assets, we can pay off all the debts, Wang said With the completion of the Chicago project sale, Wanda overseas projects have been sold out.

A person close to Wanda told China Securities News that previously, Wanda Groups overseas business has been developing this platform in Wanda Hotel, and in recent years, it has begun to compress and sell its overseas business. The Chicago property project sold this time is still under construction, belonging to the category of heavy assets. In the future, Wanda hotel will focus on the development of hotel management, hotel design and construction, and operate in the form of light assets. The hotel business developed by Wanda hotel belongs to the service type business, which is relatively low in terms of revenue and fund withdrawal speed. The sale of Chicago project has greatly improved the daily cash flow and profitability of the company. According to the financial data of Wanda hotel development, in the first half of 2020, the company realized a total of 227 million yuan of operating income, a year-on-year decrease of 36.53%; the net profit attributable to the shareholders of the parent company after deducting non-profit was - 33.0537 million yuan. As of November 25, the companys share price closed at HK $0.29/share. Editor: Li Ruoyu yawenhui source: China Securities Journal Author: Dong Tian editor in charge: Zhong Qiming_ NF5619

According to the financial data of Wanda hotel development, in the first half of 2020, the company realized a total of 227 million yuan of operating income, a year-on-year decrease of 36.53%; the net profit attributable to the shareholders of the parent company after deducting non-profit was - 33.0537 million yuan. As of November 25, the companys share price closed at HK $0.29/share.