Chinese offshore investment

Property giant Wanda mulls mega investment in Madrid

PUBLISHED : Friday, 26 June, 2015, 9:28am
UPDATED : Friday, 26 June, 2015, 9:28am

Chinese property giant Wanda is considering another big investment in Madrid worth billions of euros but will face strict conditions from the city’s new left-wing council, a councillor said.

The new investment could be “10 times bigger” than the ¤265 million (now US$297 million) Wanda paid last year for a historic Madrid skyscraper, said the leader of the Socialist Party group in the council, Antonio Miguel Carmona.

The real estate and entertainment group owned by Chinese billionaire Wang Jianlin bought the skyscraper on the Spanish capital’s Plaza de Espana in June 2014. It also wants to build a shopping centre and water park in Madrid’s Latina district.

Now Wanda has “expressed its intention to carry out a third big project in Madrid,” Carmona told a news conference.

“They did not give concrete details but ... they valued it about 10 times bigger than the Plaza Espana operation.”

In April Jianlin also bought a 20 per cent stake in Atletico Madrid football club for ¤45 million.

Madrid’s new anti-austerity mayor Manuela Carmena has put investors on edge by vowing to scrutinise big building projects approved by the former conservative council.

Leader of a group born out of Spain’s “Outraged” protest movement, the 71-year-old former judge Carmena clinched control of the city hall with Carmona’s support after last month’s elections.

Carmona said he met on Thursday top Wanda executive Michael Qiao after the Chinese group contacted him to express its “concern for its investment” under the new mayor.

He said Wanda and the council had set up a commission to discuss the development and will consult citizens and environmental groups.

Wanda reportedly wants to turn the building into a hotel and shopping centre.

The commission will discuss how “to save Wanda’s big investment in Madrid on condition that the project benefit the citizens and not cost city hall a single euro”, Carmona said.