Wanda focus shift continues as property management unit is sold to Shenzhen developer
China’s Wanda Group, headed by billionaire Wang Jianlin, has agreed to sell its property management unit to a Shenzhen property developer as the company shifts its focus from real estate to entertainment and tourism.
In a filing to the Hong Kong stock exchange on Monday evening, Shenzhen-based Fantasia Holdings Group said it, through its subsidiaries, would acquire Wanda Property Management from parent Wanda Commercial Properties, the real estate arm of Wanda Group.
Financial terms were not disclosed.
However, mainland financial newspaper China Business News reported the deal was worth about 1.2 billion yuan, one of the biggest transactions by value in China’s property management sector.
“Upon completion of the acquisition, it is anticipated that the Fantasia Group will provide property management consulting services to the residential and commercial properties under the management of Wanda Property Management,” Pan Jun, chairman of Fantasia, said in the statement.
Colour Life Services, owned by Fantasia, is the largest property manager in terms of residential units managed in China, while Wanda Property Management primarily provides property management services to properties developed by Wanda Commercial.
Colour Life shares in Hong Kong rose 3.8 per cent on Monday, beating peers such as Greentown Service and China Overseas Property.
Wang has often said this year that the real estate giant wants to step up focus on entertainment and tourism-related businesses while cutting back on property development.
He announced earlier a 39 per cent reduction in its property sales target for the year to 100 billion yuan.