(Reuters) – Chinese real estate giant Dalian Wanda Group plans to sell tourist projects and hotels in the country Sunac China for 9.3 billion already made its ambitions in the theme park reduced its debt.
The sale – the second largest real estate business in China according to Reuters data – will help strengthen the argument for Wanda Continental listing after its ownership unit has been removed from Hong Kong last year.
For Sunac would imply ownership of a wide range of tourism developments at a time when it will pass billions of real estate and technology assets.
Wanda said it would release 91 percent of the thirteen cultural tourism projects, which usually include theme parks and entertainment complexes, and 76 hotels from the acquitçu-based developer Sunac Tianjin to 63.18 billion yuan.
After the sale, however, Wanda will continue to play a role in running and managing projects.
Wanda, who also has interests in films and sports, had planned to build at least 20 cultural projects in China. Its billionaire owner Wang Jianlin had said last year that its “wolf pack” parks beat its American rival Walt Disney Co.
“This agreement represents a departure from Wanda’s previous strategy in the field of cultural tourism and a pivot for a strategy of fortune,” said Qin Gang, a researcher at the State Information Center, a government-run think tank.
Beijing has promoted the development of cultural amusement parks as part of a local tourism initiative, exploiting the growing budget of entertainment consumers. There are more than 300 such facilities in China, which have the benefit of getting the most difficulty.
Wanda parks are under construction, with the exception of three that has been completed. Two that opened in Nanchang and Hefei last year are not among the top 20 in the presence of Asia Pacific, the issues of the AECOM 2016 Thematic Index.
The company, which has allocated an investment of more than 300 billion yuan (44 billion) for its cultural and tourism projects, has not given a reason for the sale to Sunac, but local business magazine Caixin Wang quoted as saying The deal would reduce debt on the Wanda property unit.
“With this asset transfer, Wanda’s commercial debt ratio will be significantly reduced, all proceeds will be used to repay the loans.” Wanda Comercial plans to pay off most bank loans this year, “Wang said in Caixin.
Analysts said the lower debt burden could help Wanda plan list of units in Shanghai and attract a higher valuation.
S & P downgraded Wanda Trading in December citing a leverage and the elimination of slower financial assets the expected rise in China’s biggest trading promoter. Another downgrade would push the rating as “junk”.
The group invested heavily in the entertainment industry, leisure and finance and buying activity attracted the attention of Chinese regulators, who last month ordered lenders to evaluate exposure to transactions in overseas by Wanda, HNA Group , Seguros Anbang and Fosun.
Wanda was very active all over the world, with chain offers from US theaters. AMC Entertainment Holdings Inc., the Hollywood film studio Legendary Entertainment, Infront Sports & Media AG and the Spanish team Ateltico Madrid.
Over the past year, the director, Sun Hongbin, led the group in an acquisition, including 2.1 billion in real estate assets of Legend Holdings, Lenovo computer maker and father 2.2 billion for a stake in Leshi Internet, a unit Of Leeco – a Chinese conglomerate Netflix to Tesla.