China: Wanda Group, SUNAC and R&F Sign Strategic Cooperation Agreement
As jointly announced in a recent media release, Wanda Commercial Properties, SUNAC China Holdings and R&F Properties have signed a strategic cooperation agreement, according to which the Wanda Group sells large parts of its hotel and leisure division. Wanda Commercial Properties will transfer 77 hotels to R&F Properties at a transaction value of some 2.5 billion EUR (19.91 billion RMB). Furthermore, the group sells 91% of the equity (with a total value of approx. 5.6 billion EUR/43.84 billion RMB) of 13 “Wanda Cultural Tourism City” projects, including belonging theme parks (e.g. the Wanda Xishuangbanna International Resort, c.f. EAP, 3/16).
On July 10th, 2017, Wanda has already signed an agreement only with SUNAC, before the companies resumed negotiations to sign a strategic cooperation paper with R&F Properties on July 19th. With respect to the cultural tourism projects, the companies agreed that all operations will continue being operated and managed by Wanda under the unchanged brand “Wanda Cultural Tourism City”. Also, planned projects shall still be developed and constructed in accordance with the plans approved by the Chinese government. With this strategic cooperation, Wanda seeks to decrease its liabilities and thus boost the company’s cash flow. (eap)
