The future of Chinese developer Dalian Wanda Group’s international projects including two in Australia is again very much up in the air as the company comes under increased pressure from the Chinese government to rein in offshore investments.
The South China Morning Post reports that Dalian Wanda, owned by billionaire Wang Jianlin, is offering all five of its large international projects to a single buyer for $US 5 billion ($6.6 billion). The projects include its luxury One Circular Quay hotel and apartment development in Sydney and the Jewel three-tower project on the Gold Coast.
The group was forced to issue a statement in August to deny previous speculation about a sell-off.
The Chinese central government has reportedly been ramping up pressure on Wanda to cease its international expansion and reduce its debt. The government has imposed controls over outbound investment in property, hotels and other industries.
The sale listing would include Wanda’s One Beverly Hills hotel and condo project in Los Angeles, One Nine Elms skyscraper in London, and Vista Tower in Chicago in addition to the two Australian developments.
Wanda has already sold out of some its movie studio and theme park assets overseas with Mr Wang’s personal fortune dropping him to fourth wealthiest Chinese billionaire according to Forbes at US$25 billion.
One Circular Quay is to be constructed on the site of Gold Fields House at 1 Alfred Street with demolition work underway, and will feature 190 luxury apartments and a 181-suite five-star hotel. Gold Fields House was purchased for nearly $490 million in 2015.
On the Gold Coast, construction of beachfront Jewel at Surfers Paradise is well advanced with completion expected in 2019. More than a third of the apartments have been sold. The three towers will comprise 512 apartments and a luxury hotel.
It is speculated that potential local buyers are already lining up, with Wanda also likely to team up with another Chinese company or strike a joint venture with a local operator.
The sale of all five developments to a single buyer is considered unlikely.