2 Wanda units in Hong Kong team up to invest in Australian property
Wanda Commercial Properties (Group) is taking part in a joint venture in Australia valued as much as HK$7.5 billion with its parent firm.
The Hong Kong-listed developer said in a stock exchange announcement on Tuesday morning it will pay for the investment with internal funds and debt and equity fundraisings.
Wanda Commercial Properties (Hong Kong), the controlling shareholder of the listed company, will commit additional funds of up to HK$5 billion.
The two parties will own a combined 100 per cent of Wanda Australia Real Estate Investment, the holding vehicle for the venture’s Australian property investments.
Wanda Australia Commercial, a subsidiary of Wanda Australia Real Estate, has committed to buy 55 per cent of Jewel Project Co – which owns 11,355 square metres of beachfront property on Australia’s Gold Coast in Queensland – for A$5.1 million (HK$36.6 million).
The remainder of Jewel Project Co will be owned by Riyu Li and Fengliu Wu, individual property developers. The company aims to build a resort hotel and apartments on the site.
To develop the projects, Wanda Australia Commercial will inject A$88.5 million, of which A$22 million will be used to repay mortgages, A$6.2 million will go to the Lis, and A$23.7 million will be used to repay a previous shareholder loan.
Wanda Australia Commercial will be seeking debt funding.