Exclusive | Wanda wants US$5b from single buyer for five offshore assets as China reins in investments abroad
Analysts say the Chinese conglomerate may have difficulty finding someone to buy the assets, which include London’s One Nine Elms skyscraper
Chinese conglomerate Dalian Wanda Group, once a serial acquirer of overseas assets, is offering to sell all five of its large-scale projects in Britain, the US and Australia to a single buyer for an estimated US$5 billion, as Beijing tightens control over companies’ offshore investments.
It is the latest move by Wanda, owned by billionaire Wang Jianlin, to offload assets as the central government ramps up pressure on the company to curb offshore expansion and reduce its debt levels.
China has been urging mainland firms to exercise caution in their offshore deal making. The government has imposed controls over outbound investment in property, hotels, entertainment, sports clubs and the film industry.
Potential investors have been approached by representatives of Wanda looking to sell all five projects in one go, according to two people familiar with the matter, who did not wish to be identified.
“They are looking for one buyer who can snap up five development projects in five cities,” said one of the sources.
“That will be a big investment. But basically they intend not to sell the assets at below cost, which is about US$5 billion.”