Chinese Developer Sells Majority Stake in Mall Unit for .3 Billion deal

A consortium of investors, led by private equity firm PAG, has sealed a deal worth .3 billion to acquire a 60% stake in Dalian Wanda’s mall unit in China. The remaining 40% stake will be retained by Dalian Wanda in Newland Commercial Management, the holding company of Zhuhai Wanda Commercial Management Group Co.

Alongside PAG, other key investors in this high-profile deal include CITIC Capital, the Abu Dhabi Investment Authority, Mubadala Investment Company, and Ares Management Corporation. The investment aims to capitalize on the competitive edge and first mover advantage that Newland has established, with the expectation of generating steady and increasing cash flow for investors, as mentioned by David Wong, a partner and co-head of private equity at PAG.

Newland currently oversees a portfolio of 496 large shopping malls across China. This investment follows a previous agreement between PAG and Dalian Wanda Commercial Management Group to restructure Zhuhai Wanda Commercial Management, signaling a significant milestone in the strategic partnership between the two entities.

This development represents a major move in the Chinese property market, with implications for the future of retail management and investment in the region.