On January 3, the news of Wang Jianlin’s sale of assets swiped the screen again. As Wanda’s core asset, many Wanda plazas have undergone industrial and commercial changes recently. Before that, the relevant equity of Wanda Hotels and Wanda Film have also changed.
Sale of multiple Wanda plazas
According to the National Enterprise Credit Information Publicity System, Shanghai Jinshan Wanda Plaza Investment Co., Ltd. has undergone industrial and commercial changes recently. The original wholly-owned shareholder Dalian Wanda Commercial Management Group withdrew, and Suzhou Lianshang No. 2 Commercial Management Co., Ltd. under Zhonglian Fund was added as a shareholder. At the same time, the registered capital of the company was increased from 50 million yuan to about 115 million yuan. Zhang Jing stepped down as the legal representative and was replaced by Mu Zhou. The approval date is December 27, 2023.
Prior to this, according to Tianyancha App data, Guangzhou Luogang Wanda Plaza Co., Ltd. had undergone a change of ownership. Its major shareholder was changed from "Dalian Wanda Commercial Management Group Joint Stock Company" to "Suzhou Lianshang Commercial Management Co., Ltd.", and the company’s legal representative was also changed from Zhang Jing to Mu Zhou. Suzhou Lianshang Commercial Management Co., Ltd. holds 100% of Guangzhou Luogang Wanda Plaza. Guangzhou Luogang Wanda Plaza opened in July 2015, with a commercial volume of 410,000 square meters. The controlling shareholder of Suzhou Lianshang Commercial Management Co., Ltd. is Suzhou Xinlian Management Consulting Co., Ltd., which is 100% owned by Zhonglian Qianyuan Real Estate Fund. In other words, Guangzhou Luogang Wanda Plaza to take over the party for the United front source real estate fund.
Huzhou Wanda Plaza is located in the eastern new town of Huzhou City, Zhejiang Province, with a total construction area of 140,000 square meters. It opened in 2016. On December 26, 2023, Huzhou Wanda Investment Co., Ltd. underwent industrial and commercial changes. The original wholly-owned shareholder Dalian Wanda Commercial Management Group Joint Stock Company withdrew, and Suzhou Lianshang Wuhao Commercial Management Co., Ltd. was added as a wholly-owned shareholder.
Earlier, there was an equity change in Taicang Wanda Plaza Investment Co., Ltd. The original wholly-owned shareholder Dalian Wanda Commercial Management Group Joint Stock Company withdrew, and Suzhou Lianshang No. 3 Commercial Management Co., Ltd. was added as a wholly-owned shareholder. The legal representative of the company was changed from Zhang Jing to Mu Zhou. Suzhou Lianshang No. 3 Commercial Management Co., Ltd. is 100% owned by Zhonglian Qianyuan Real Estate Fund. The equity change took place on December 25, 2023. Taicang Wanda Plaza is located in Taicang City, Suzhou City, Jiangsu Province. It opened on December 7, 2012 with a construction area of 477,000 square meters.
According to public information, Suzhou Lianshang No. 3 Business Management Co., Ltd., Suzhou Lianshang Wuhao Business Management Co., Ltd., Suzhou Lianshang No. 2 Business Management Co., Ltd., and Suzhou Lianshang No. 2 Business Management Co., Ltd. are all subsidiaries of Zhonglian Fund. Zhonglian Fund focuses on the real estate financial business with REITs as the core. It takes real estate securitization as the entry point and extends to both ends to form three business lines: real estate investment incubation, real estate securitization investment banking, and securitization product investment, and lays out the whole business chain of real estate with various themes. The investment business model involves a variety of fund models such as strong entity listing funds, mezzanine funds, and merger and acquisition funds, and has continued to land many real estate investment projects.
Wanda Hotels and Wanda Films Sold
In addition to Wanda Plaza, China Securities Journal reporters observed that recently, Wanda’s Wanda hotels and Wanda Film-related assets have also been sold.
Credit China data shows that on December 22, 2023, a number of industrial and commercial changes occurred in Shanghai Wanda Hotel Investment Co., Ltd. The former wholly-owned shareholder Dalian Wanda Commercial Management Group joint stock company withdrew, and Beijing Yinglang Commercial Management Co., Ltd. was newly added as a wholly-owned shareholder. The legal representative of the company was changed from Zhang Jing to Zhao Yong.
Regarding the asset change of Shanghai Wanda Hotel Investment Co., Ltd., a person familiar with the matter responded to the China Securities Journal reporter that although Wanda has successfully sold the assets of Shanghai Wanda Ruihua Hotel, the hotel is still managed by Wanda, and the Wanda brand is retained, which means that Wanda is in the process of implementing light assets. In recent years, Wanda Group has actively deleveraged, reduced liabilities, and developed a strategy of light assets and brand export. Combined with a series of measures such as Wanda Group’s recent agreement with the Pacific Alliance, it means that Wanda Group’s asset structure is increasingly optimized. The new owner of Shanghai Wanda Ruihua Hotel is a diversified large multinational company, which fully recognizes Wanda Hotel Management Company. Later, it will not rule out entrusting Wanda to manage other domestic and foreign hotels of its own.
Previously, Wanda Film announced that the company received a notice on December 6, 2023 that the company’s indirect controlling shareholder, Beijing Wanda Cultural Industry Group Co., Ltd., and its wholly-owned subsidiary, Beijing Hengrun Enterprise Management Development Co., Ltd., and the company’s actual controller, Wang Jianlin, intended to transfer the 51% equity of the company’s controlling shareholder, Beijing Wanda Investment Co., Ltd. to Shanghai Ruyi Investment Management Co., Ltd.
Bai Wenxi, vice chairperson of the China Enterprise Capital Alliance, told China Securities Journal that Wanda owns nearly 500 Wanda plazas across the country and has enough capital and resources to adjust, optimize and move. Projects in some core areas often have high commercial value and attractiveness, so they are easier to become targets for transfer. From a strategic perspective, Wanda’s asset-light strategy is one of its core strategies for long-term development. By transferring some assets or projects, Wanda can reduce its own operating risks, obtain more funds and resources, invest in more potential markets or projects, and resolve its own phased liquidity pressure. In addition, Wanda can also share commercial interests with more partners through this strategy to achieve a win-win situation.
Mr. Bai said the transfer did not mean giving up a market or area. It could be part of a shift in Wanda’s overall strategic model and market strategy. In due course, Wanda may still return to these markets or areas to continue to drive its business development. This reflects both its implementation of the asset-light strategy and its flexibility to respond to market changes.