Wanda sells majority stake in mall unit in multi-billion dollar deal

A private equity firm, PAG, along with other investors, has revealed a substantial investment of .3 billion for a 60% stake in the mall unit of Dalian Wanda, a prominent Chinese property giant. Dalian Wanda will maintain a 40% stake in Newland Commercial Management, the holding company of Zhuhai Wanda Commercial Management Group Co.

The investors involved in this deal include CITIC Capital, the Abu Dhabi Investment Authority, Mubadala Investment Company, and Ares Management Corporation. According to David Wong, partner and co-head of private equity at PAG, the group appreciates the competitive edge and first-mover advantage that Newland has established. This advantage is expected to generate stable and increasing cash flow for investors.

Newland currently oversees 496 large shopping malls throughout China, highlighting the company’s extensive reach in the country. Last December, PAG and Dalian Wanda Commercial Management Group announced a joint investment framework to restructure Zhuhai Wanda Commercial Management. The recent agreement solidifies this framework and marks a significant step in the partnership between the two entities.