Dalian Wanda Group Co. has made a significant move by agreeing to cede control of its shopping mall unit in a deal worth 60 billion yuan ($8.3 billion). This decision comes as part of a restructuring agreement for Zhuhai Wanda, which was initially announced in December.
Investors led by PAG will now hold a majority stake of 60% in Newland Commercial Management, the newly formed holding company of Zhuhai Wanda Commercial Management Group Co. Dalian Wanda Commercial Management Group Co. will retain control of the remaining 40%. This shift in ownership is expected to bring about positive changes for the company, with international institutional investors expressing confidence in Newland’s long-term growth potential.
The deal will enable Newland to operate independently from its former parent company, providing better incentives for management and supporting continued operational improvement. With 496 large-scale shopping malls in 230 cities across China under its management, Newland oversees approximately 70 million square meters of floor space.
Billionaire founder Wang Jianlin relinquished control of Zhuhai Wanda in December to avoid repaying pre-IPO investors. The new agreement saw pre-IPO investors, including PAG, Ant Group Co., Citic Securities Co., and Tencent Holdings Ltd., taking a larger stake in the company.
The deal announced on Saturday did not include earnout provisions, and there was no requirement for a listing date from Wanda regarding the mall operation business. This move comes at a crucial time for Wanda, as the conglomerate faces challenges in the property sector amid increased borrowing costs and regulatory pressures from Beijing.