Chinese conglomerate Dalian Wanda Group has agreed to sell London luxury development project One Nine Elms for 59 million pounds (US$81 million) , amid a wave of asset sales by the conglomerate to reduce debt.
The news comes amid rumors that the firm is considering a Hong Kong listing for its sports unit, a move seen as a bid to rationalize its portfolio. Amid increasing government scrutiny, Chinese conglomerates have been offloaded assets. Last month, Fosun Group sold off a property project in Sydney for $142.5 million (US$109.2 million). HNA Group is reportedly selling about 20 commercial properties abroad, including two properties in New York bought as recently as 2016.
After a wave of aggressive overseas purchases funded by onshore debts, the China Banking Regulatory Commission reportedly asked some banks to provide information on overseas loans made to the aggressive buyers, including Dalian Wanda, Anbang Insurance, HNA Group and Fosun last June.
Wanda Hotel Development Co Ltd announced in a statement plans to sell its 60% stake in a company that owns the London property project for 35.61 million pounds (US$49 million) and the buyer also agreed to repay 159.5 million pounds (US$219 million) in debt, according to a security filing. Wanda bought the Nine Elms Lane property in 2013.
Another Wanda firm, Wanda Commercial Properties (Hong Kong) Co. Ltd., is also selling the remaining 40% stake in the property project, meaning Wanda is selling 100% of the property for around 59 million pound (US$81 million).
Guangzhou R&F Properties Co., is reportedly to be the buyer, according to media report. R&F Properties bought 77 hotels for about RMB19.9 billion (US$3.1 billion) last July.
R&F Properties could not be reached for comment.