Wanda Hotel Unit Announces $1B Group Restructuring

Wang Jianlin

Wang Jianlin wants to assure you that everything should be just fine

In today’s headlines, troubles continue for Wang Jianlin as Dalian Wanda is reshuffling over $1 billion in assets, while a troubled Singaporean industrial trust may be in luck, as the manager of e-Shang Redwood (ESR) is in talks for a potential acquisition of Sabana REIT. Back on the mainland, HNA Group keeps bidding on foreign airport opportunities despite a government clampdown, and McDonald’s plans to nearly double its stores in the country by 2022, apparently betting that China’s appetite for Big Macs is as vast as HNA Group’s hunger for overseas deals. Read on for all these stories and more.

Wanda Hotel Unit Announces $1B Group Restructuring

In the latest in a series of controversial restructuring deals for Chinese conglomerate Dalian Wanda, Wanda Hotel Development, a subsidiary of the group, has said it will buy over $1bn of assets from founder Wang Jianlin.

In a statement on August 10, Wanda Hotel Development announced it would acquire Wanda Culture Travel Innovation for ¥6.3bn ($945m), paid either in cash or through the issue of shares and convertible bonds, and Wanda Hotel Management for ¥750m ($113m), paid in cash. The announcement saw shares in Wanda Hotel Development rise by over 30 percent. Read more>>

ESR in Talks to Acquire Singapore’s Sabana REIT

The troubled Sabana Reit may have found its white knight in Warburg Pincus-backed logistics developer e-Shang Redwood (ESR), following its unitholders’ attempts in April to oust its manager and months of trying to sell its underperforming industrial portfolio.

On Monday, responding to a report by Reuters, the management of Sabana Reit clarified that it was “in discussions” with ESR Funds Management, the manager of ESR-Reit (formerly Cambridge Industrial Trust) to “explore options” in connection with its strategic review. Read more>>


McDonald’s To Nearly Double China Stores to 4,500 by 2022

McDonald’s will nearly double the number of restaurants in China in the next five years, eventually surpassing Japan as the hamburger chain’s second-biggest market outside the U.S.

The company, based in Oak Brook, Illinois, just outside of Chicago, expects to have 4,500 restaurants in China by 2022, up from 2,500. With fewer people eating at U.S. locations, it hopes to grow sales in China by double digits in each of the next five years. Read more>>

GLP Sees 29% Quarterly Profit Drop

Global Logistic Properties Ltd., a target of acquisition by a Chinese private-equity consortium, on Tuesday said its fiscal first-quarter net profit fell 29% from a year earlier, due in large part to lower revaluation gains.

Net profit in the June quarter fell to US$144.2 million from US$202.9 million a year earlier, the company said in a statement to the Singapore Exchange. Earnings excluding revaluations rose more than 100% due to foreign exchange movements. Read more>>

Beleaguered HNA Still Hungry for Airport Deals

HNA Group is preparing its bid for a concession to operate Belgrade’s airport, a company executive said, undeterred by Beijing’s sharpened scrutiny of overseas acquisitions, which has clouded some of the Chinese conglomerate’s other pending deals.

HNA is leading a consortium that includes AVIC International Holding Corp and China-Central and Eastern Europe Investment Cooperation Fund for the 25-year concession to operate Nikola Tesla airport, the biggest in the Balkan region. Read more>>

Angelo, Gordon Bids on Seoul Office-to-Hotel Redevelopment

A consortium led by US investment firm Angelo, Gordon & Co. has been selected as a preferred buyer of a Kookmin Bank’s building in Seoul, for which the New York-based company placed the highest bid among four bidding groups with an aim to rebuild the 17-story property as a luxury hotel.

Savills Korea, which managed the sale, picked the Angelo, Gordon-led consortium as the preferred bidder on August 4, in a deal worth over 240 billion won ($210 million), according to real estate investment sources. Read more>>

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