Chinese conglomerate Dalian Wanda Group is moving to sell its last two overseas property projects in the U.S. as its continuous unwinding its outstanding debts, according to media reports.
The company is seeking buyers for a hotel, office and apartment complex in Chicago and a development in Beverly Hills, California, at an estimated combined valuation of US$2.1 billion, according to the report.
Wanda did not respond to a request for comment from China Money Network.
The two projects are Wanda’s last property assets overseas, after Wanda sold two property projects in Australia and one project in London this month.
Its Hong Kong-listed unit Wanda Hotel Development Co., Ltd. said it agree to sell properties in Sydney and the Gold Coast for AU$315 million (US$254 million) in cash and the purchasers would repay its AU$815 million (US$657 million) in debt on January 29th. It also agreed to sell London luxury development project One Nine Elms for 59 million pounds (US$81 million), marking a 34% decline from its original purchase price.
China Money Network has reported that Dalian Wanda is offloading its overseas assets to meet its March deadline to pay US$510 million offshore loans.
Last September, S&P Global lowered its credit rating for Dalian Wanda Commercial Properties, citing uncertainties about the group’s business outlook and access to funding. Due to the downgrade, the firm was forced to repay some of its debts early. However, the firm hasn’t yet to receive approval from China’s State Administration of Foreign Exchange to remit its onshore cash for offshore debt payment, according to S&P Global Ratings associate director Dennis Lee.
