Wanda’s first Beverly Hills adventure won’t be last for Chinese developers

Dalian Wanda Group, China's largest developer of commercial properties, has made its first foray into Beverly Hills, Los Angeles, blazing a trail for other Chinese developers eyeing the world-famous luxury shopping destination.

Wanda announced on Friday that it had won a plot at 9900 Wilshire Boulevard in Beverly Hills, beating out more than 10 bidders from Asia and North America.

It said it planned to invest US$1.2 billion to build a mixed-use development, without disclosing details, including the price it paid for the site.

"Wanda has already built up a large retail operation on the mainland. The move shows the developer wants to go overseas in the light of limited room for expansion at home, particularly in the highly competitive retail industry," said Thomas Lam, the head of valuation and consultancy at international property consultancy Knight Frank.

"It may set a precedent for more mainland Chinese developers to enter the commercial property market in the United States."

Property prices in the US would probably be lower than those in mainland China and Hong Kong, he said.