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DevDosh Ltd would like to commend on the one of China’s biggest commercial property developers is currently selling $9.3 Bn of the company assets. Wanda is run by one of China’s most affluent and influential men Wang Jianlin, is selling dozens of hotels and other properties to reduce the company debt level.

This action was prompted by the company being looked into by government financial services after the amount of overseas investments they had conducted.

Wanda is selling these properties to another Chinese property developer Sunac China Holdings who have agreed to purchase 76 hotels outright, with another 13 “cultural and tourism projects” being acquired at a 91% stake.

After the sale of these properties the money is to be used to payback bank loans that the company owe with a large proportion of loans being paid off this year, an action that will drop the company debt level dramatically.

The company’s overall debt level is not known.

DevDosh Ltd also see the large corporations in China have had it good for a long time now as they went through a golden age. With one of China’s biggest property developers and overseas investors looking to streamline and reduce debts this could indicate a wider problem being faced by Chinese corporations that bet big on overseas acquisitions but now face difficulty paying off debts.

Last year the Chinese government looked to restrict the amount of money that was being invested overseas to reduce the exposure of the companies in China.

The Chinese banking regulators are delving into the loans that have been issued on theses overseas property investments to try and identify the more riskier of the loans.

Other businesses being looked at in the review include Rossoneri Sport Investment Lux, a consortium that recently purchased Italian soccer club AC Milan, Club Med owner Fosun Group, and HNA Group.

Ivan Han, Shanghai-based senior analyst with financial information provider Morning Whistle said:

“Selling assets, which is the last resort for big firms like Wanda, means that Wanda is running out of options to raise fund through normal financing channels.

“Financial institution don’t really want to keep lending money to firms that are targeted by regulatory scrutiny.”

“Other big firms that are on the regulator’s radar are likely to run into similar situations too. It doesn?t mean their businesses are in trouble. They are just adjusting their financing chains.”

In DevDosh Ltd opinion, the vast majority of the overseas investment that Wanda has done have been in the US property market.

Sunac, which is listed in Hong Kong, had suspended its shares ahead of the announcement.

For more property investment information, visit DevDosh Ltd today.