Chinese developer Wanda launches $1.7bn Australian arm
One of China’s biggest developers will launch an Australian arm with $1.7 billion in capital to splash into the nation’s real estate market.
In an announcement to the Hong Kong Stock Exchange today, the Wanda Group revealed it would form Wanda Australia, with funding up to $HK12.5 billion ($1.74 billion), to focus on real estate.
The Hong Kong listed property-development company, Wanda Commercial Properties and Wanda HK, would respectively contribute $HK7.5 billion and $HK5 billion to the new entity after assessing “the current real property market in Australia and expected acquisition and development costs for suitable real property projects”.
It will be financed through the company’s internal resources, debt and/or equity financing.
In a parallel announcement, Wanda announced a joint venture to develop the $1 billion Jewel apartment and hotel complex on the Gold Coast with a 55 per cent stake.
“It is intended that the Jewel Project Co will develop the Jewel Property into a mixed-use development consisting of residential units, commercial space, hotel units and parking spaces,” the announcement said.
Wanda’s Australian arm will provide initial capital of $88.5 million to the project and expects a total commitment of Wanda Australia Commercial’s capital commitment of $290 million.
Source: theaustralian
