China's Wanda officially concluded a deal to transfer control of its shopping center unit (Reuters)

The Chinese Dalian Wanda Group has officially concluded a huge deal, transferring control of its shopping mall unit (Zhuhai Wanda) in a deal valued at approximately 60 billion yuan ($8.3 billion).

This agreement, which was announced yesterday, Saturday, is the culmination of the restructuring plan that began last December.

Details of the deal reveal that investors led by BAG will collectively own a controlling stake of 60% in the holding company, Newland Commercial Management, which was newly formed to complete the deal. While the Wanda Group will retain the remaining 40%, according to a statement issued with the announcement.

David Wong, Partner and Co-Head of Private Equity at BAG, emphasized that this transaction “reflects the expectations and recognition of Newland’s long-term growth potential by international institutional investors.”

Participants in this transformational deal include CITIC Capital, funds managed by Ares Management, the Abu Dhabi Investment Authority, and the UAE’s Mubadala Investment Company.

Dalia Wanda Group was proud to have a total floor area exceeding 70 million square meters (Reuters)

Historical moment

Moreover, the agreement promises enhanced incentives for management and continuous operational improvements, the statement stressed. Newland operates with a large scale of operations, managing a portfolio of 496 large-scale shopping centers spread across 230 cities in China, and boasting a gross floor area of ​​more than 70 million square metres.

Billionaire Wang Jianlin's relinquishment of control of Zhuhai Wanda last December represented a pivotal moment in the group's history, representing an important chapter in the path of the large investment conglomerate. As part of the agreement, Wang relinquished control to pre-IPO investors who collectively amassed a significant 60% stake in the entity.

Sources familiar with the deal revealed to Bloomberg that no specific listing date for the shopping center operating business has been set by investors.

Wanda's journey - once lauded as a beacon of excellence in China's junk bond market - has faced headwinds amid rising borrowing costs and intense regulatory scrutiny of the real estate sector by Beijing.

However, this historic deal signals a strategic pivot, potentially leading the group towards a new era of stability and growth.

Source: Bloomberg