Wang Sicong goes to work, Wang Jianlin breaks through! Wanda plans to sell Wanda Plaza, a first- and second-tier city

Wang Sicong went to work, Wang Jianlin broke through...

Wang Sicong, who had made it clear that he would not take over, appeared at the signing site of the Shandong Tai'an Cultural Tourism Project and regained his father's old dream of cultural tourism.

In the past few years when his son's investment career has suffered repeated setbacks, Wang Jianlin, who is nearly 70 years old, is still "breaking through" on the front line of Wanda, and at the end of the year, it is the most anxious moment when the VAM agreement expires. Whether Wang Jianlin can survive this battle is still unknown.

Recently, Zhuhai Wanda Commercial Management revealed in the process of communicating with investors that Wanda Group plans to sell its Wanda Plaza in first- and second-tier cities in exchange for liquidity, and is currently negotiating with insurance institutions.

However, Wanda did not disclose which insurance institution it approached. At the same time, as for the timing of Zhuhai Wanda Commercial Management's listing in Hong Kong, Wanda said that there is still no IPO timetable.

In the face of the upcoming VAM period and the large-scale debt that matures in a concentrated manner, Wanda has started a new round of asset realization this year.

The company's many Wanda Plaza, financial licenses, Infront Sports, film company equity... Without exception, they were put on the shelves.

Previously, Dalian Wanda Commercial Management once again transferred its Shanghai Zhoupu Wanda Plaza, and the receiver was Everyone's Insurance.

Shanghai Zhoupu Wanda opened in 2009 and is the second project operated by Wanda in Shanghai, with a total investment of more than 2.5 billion yuan and a total construction area of 320,000 square meters, of which 150,000 square meters are commercial areas.

According to third-party data, in 2019 and 2020, the project achieved sales of 2.43 billion yuan and 2.1 billion yuan respectively, ranking among the top 10 in Wanda Plaza's sales.

Previously, we took over three projects: Shanghai Songjiang Wanda, Jiangmen Taishan Wanda and Qinghai Xining Wanda from Dalian Wanda Commercial Management.

Commercial real estate such as office buildings, shopping malls, hotels and other commercial properties have the advantages of long lease term and stable returns, which can ensure long-term and stable returns.

Whether it is Shanghai Songjiang Wanda and other projects acquired in the early stage, or Shanghai Zhoupu Wanda, which was taken over this time, they are all in the mature operation stage, and the overall rent level and profitability are of high quality, and it is easy to change hands in the future.

For Wanda, seeking insurance capital to take over, on the one hand, can quickly divest heavy assets and return funds, and on the other hand, after the insurance capital takes over, Wanda can still obtain the right to operate, so as to realize the transformation from heavy assets to light assets.

Since the debt turmoil, Wanda has continued to sell assets to supplement cash flow to solve urgent needs.

According to media reports, Wanda Group had previously proposed in previous negotiations with buyers that the property project could be sold to the other party, but required itself to have the right to buy back. For this clause, some buyers directly choose to reject.

In terms of performance, in the first half of 2023, 12 new Wanda Plazas will be opened, with a total of 484 openings. In the first half of 2023, the total rental income was RMB26.32 billion, up 4.5% year-on-year, the net rent was RMB13.01 billion, up 7.2% year-on-year, and the net rent of comparable Wanda Plaza increased by 3.8% year-on-year. The occupancy rate was 98.2% and the rental collection rate was 100%.

It has also been revealed that Zhuhai Wanda Commercial Management intends to postpone its listing in Hong Kong to 2026 at the longest, and is currently discussing with investors. This is 2 years later than the rumors exposed at the end of October that "Zhuhai Wanda Commercial Management may choose to IPO in 2024".

In this regard, Wanda officials have not yet made a statement. If the news is true, Wanda Commercial Management will be exchanged for a longer opportunity to build momentum.