It was revealed that Wanda plans to sell its Wanda Plaza, and potential buyers or insurance institutions

At present, potential buyers are mainly insurance funds, as well as some long-term funds such as funds.

Yu Shuaiqing/from Beijing

The 38 billion yuan gambling limit at the end of the year is imminent, and Wanda Group, which is in deep cash flow difficulties, has begun to sell assets.

On December 7, market sources said that in the process of communicating with investors, Zhuhai Wanda Commercial Management recently revealed 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, Wanda said that there is still no time for Zhuhai Wanda Commercial Management to be listed in Hong Kong.

In response to this news, the reporter asked Wanda Group for verification, and Wanda Group insiders said that "there is no official response for the time being".

"It is possible, mainly to move liquidity, Wanda Group has taken too much land in third- and fourth-tier cities in recent years and encountered market freezing, Wanda Commercial Management has not been able to replenish cash flow due to its listing, and it is also facing the expiration of relevant agreements. Bai Wenxi, chief economist of IPG China, said that the current potential buyers are mainly insurance funds, as well as some funds and other long-term funds.

Previously, the insurance company Dajia Insurance had acquired Shanghai Zhoupu Wanda Plaza, Shanghai Songjiang Wanda Plaza, Xining Haihu Wanda Plaza and Jiangmen Taishan Wanda Plaza. In response to whether there is still an intention to acquire, the reporter called everyone insurance, and its staff said that "the specific situation is not clear", and another staff member said that he would convey the interview request and let the relevant person in charge contact the reporter, but as of press time, no call back has been received.

"In fact, Wanda has been selling Wanda Plaza, mainly to raise funds to repay debts and ensure zero default. Since the second half of the year, Wanda has been negotiating the disposal of some assets, and is also withdrawing from heavy asset projects step by step. A source close to Wanda revealed.

In addition, a staff member of Country Garden, one of the investors of Zhuhai Wanda Commercial Management, who had just left the company, told reporters, "Recently, Zhuhai Wanda Commercial Management has indeed communicated with Country Garden about the expectation of deferring the repayment of war investment, and the specific communication results are not clear." ”

The $600 million debt could not be repaid, the restructuring was postponed, the investors had not agreed to the extension conditions of the VAM agreement, and the majority of Wanda Film's shares had also been sold, and the Wanda Group, which was in domestic and foreign difficulties, had reached an important juncture.

In fact, since the beginning of this year, Wanda has sold several Wanda Plazas.

On October 7, Dalian Wanda Commercial Management Group transferred 100% of the equity of Shanghai Wanda Plaza Real Estate Co., Ltd., and the receiver was Everyone's Life Insurance.

According to the data, Shanghai Wanda Plaza Real Estate Co., Ltd. was established on November 20, 2007, and its assets are Shanghai Zhoupu Wanda Plaza, which is the second urban complex project operated by Wanda in Shanghai after Shanghai Wujiaochang Wanda Plaza, which opened in September 2009.

After Shanghai Zhoupu Wanda Plaza, Wanda's first county-level Wanda Plaza in Guangxi, Hepu Wanda Plaza, also changed hands to Hepu Wanghe Real Estate Co., Ltd., a local real estate company in Beihai, Guangxi, on October 8.

According to incomplete statistics, Wanda has sold at least 5 projects this year, including Guangxi Hepu Wanda Plaza, Shanghai Zhoupu Wanda Plaza, etc. According to the Wanda Commercial Management prospectus, as of December 31, 2022, Wanda Commercial Management managed a total of 472 commercial plazas, with a construction area of 65.6 million square meters under management, and 181 reserve projects, including 163 independent third-party projects.

Wanda Plaza and Wanda Movies have become the two major bargaining chips for Wanda's recent debt repayment.

On December 6, Wanda Film was suspended at the opening of the morning, and then news came that Wang Jianlin planned to transfer the remaining 51% of his shares in Wanda Investment to Shanghai Ruyi Investment Management Co., Ltd. If according to the previous transaction price prediction, Wanda Group will return more than 2 billion yuan this time.

On July 23, Wang Jianlin sold 49% of Wanda Investment's equity to Shanghai Ruyi for 2.262 billion yuan. So far, Shanghai Ruyi has 100% control of Wanda Investment, thus indirectly becoming the controlling shareholder of Wanda Film, holding 20.68% of the equity of Wanda Film.

In fact, this is the fourth time that Wang Jianlin has directly or indirectly sold the equity of Wanda Film this year, and the four times he has returned nearly 9 billion yuan.

According to market sources, Wanda's successive asset sales are in urgent need of funds to prepare for the upcoming VAM agreement.

According to the VAM agreement, if it fails to successfully pass the hearing of the Hong Kong Stock Exchange in 2023 and cannot be listed as scheduled, Wanda Commercial Management Group needs to pay about 30 billion yuan of equity repurchase money to pre-listing investors.

According to the information disclosed in the previous prospectus, Zhuhai Wanda Commercial Management's institutional investors include 22 investors, including Zheng Yutong's family, Country Garden, CITIC Capital, Ant, Tencent, and PAG investors, and the private equity firm PAG Group was the largest investor before listing.

In response to the recent discussions between Zhuhai Wanda Commercial Management and investors, a preliminary proposal was put forward to postpone the payment of about 30 billion yuan and the interest due at the end of the year. A staff member of Country Garden, one of the investors of Zhuhai Wanda Commercial Management, who has just left the company, told reporters, "Recently, Zhuhai Wanda Commercial Management has indeed communicated with Country Garden about the expectation of deferring the repayment of war investment, but the specific communication results are not clear." ”

The reporter also called Ant Group, and a staff member said that he would convey the reporter's request for an interview and ask the relevant person in charge to contact the reporter, but as of press time, no call back has been received.

However, there are also market sources that investors in Zhuhai Wanda Commercial Management rejected the proposal.

In order to solve the urgent need, Wang Jianlin proposed to adjust the repayment plan of US dollar bonds to reduce the company's short-term liquidity pressure. As a result, Wanda adjusted the repayment plan of the bonds maturing on January 29, 2024, with an issuance size of US$600 million and a coupon rate of 7.25%, and communicated with the holders about the extension plan, hoping to extend the US dollar bonds to December 29, 2024.

In addition, on November 27, it was reported that Zhuhai Wanda Commercial Management intends to postpone its listing in Hong Kong until 2026 at most, and is currently in discussions with investors. Some investors do not accept this plan, believing that the time has been delayed for too long, and according to the current environment, it is impossible to predict the future situation, and there are too many changes.

Regarding Wanda's successive asset sales, Li Yujia, chief researcher at the Housing Policy Research Center of the Guangdong Provincial Urban and Rural Planning Institute, said that the root cause is the overweight of assets and the decline in cash flow generation ability. On the surface, it is the expiration of the listing VAM agreement, and the need to repay the US dollar loan and the principal and interest of the VAM investor due to the failure of the IPO, but in essence, Wanda has too many assets. However, the ability to create cash flow from heavy assets has declined, and the ability of the sales side of the project's commercial housing sales side to contribute funds to alleviate the pressure on the debt side has declined, resulting in having to sell and sell all the time, and obtain short-term cash flow by surviving with broken arms to cope with short-term maturing debts.

Duty Editorial Board: Li Hongmei

Editor in charge: Ma Lin Liu Ya

Review: Dai Shichao

China Real Estate News All Rights Reserved

It may not be reproduced or used in any form without authorization

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