In the biggest property deal, China's largest real estate developer conglomerate, Dalian Wanda is selling 91 per cent of 13 of its large scale projects to Chinese property developer, Sunac for a whopping $9.3 billion or Rs 60,000 crore
In the biggest property deal, China’s largest real estate developer conglomerate, Dalian Wanda is selling 91 per cent of 13 of its large scale projects to Chinese property developer, Sunac for a whopping $9.3 billion or Rs 60,000 crore. Wang Jianlin, founder of Dalian Wanda Group has put three theme parks and 76 hotels on the table, Dainik Bhaskar reported. According to reports, Dalian Wanda, which also operates theaters in the country, has been unable to cope with the mounting debts. The second largest deal in China’s history will be finalised on July 31. Jianlin had earlier compared his commercial property company with the American conglomerate, The Walt Disney Company. Disney owns the Walt Disney World, a theme park famous around the world for its iconic Mickey Mouse theme and the numerous rides. Jianlin had sought to throw out its competition, the Shanghai Disney Resort, which is the second Disney subsidiary in China. He had claimed that Mickey and Donald were no longer the craze and the Chinese people should not depend on them for entertainment, the paper said.
He added that Western influences should be curbed and homegrown brands that perpetuate Chinese culture should be embraced. Jianlin had bought several small and inexpensive theme parks to compete with Disney. The Wanda Group launched a Wanda Nanchang Outdoor Theme Park in 2016 but the yearly footfall stood at only 13 lakh. At the same time, Disney welcomed at least 1.10 crore visitors. Last month, Wanda Group’s shares stumbled, which began the speculations that the government did not support the company. There were also reports that Wanda had taken loans to the tune of a trillion dollars which it was not able to pay back.
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Jianlin has said that as per the deal, Sunac will pay off all the outstanding debts of the company. According to reports, Jianlin has invested Rs 1.29 lakh crore in the company earlier this year and the recovery rate is 55 per cent. However, he is selling the company at a much lesser amount because the firm has also invested in the film industry. It owns the AMC Entertainment Holdings, which has co-produced blockbusters like Godzilla and The Dark Knight Rises, according to Bhaskar.