China’s clampdown on outbound investment hasn’t stopped Wanda Group from moving ahead with at least one overseas real estate project, as the Beijing-based conglomerate has completed its £470 million ($605.3 million) acquisition of Nine Elms Square in London.
Wanda has purchased the 10.2-acre (4.13 hectare) site in the city’s Vauxhall area near the Battersea power station from a joint venture of UK developer St. Modwen Properties and French construction giant Vinci, according to a Monday (8/21) announcement on the London Stock Exchange by St. Modwen. The parties had exchanged contracts on the sale in late June.
The closing of the sale comes during the same month that Wanda announced a restructuring of more than $4.5 billion of its overseas assets, as the conglomerate controlled by billionaire Wang Jianlin comes under pressure from Chinese regulators determined to rein in debt and curb outflows of foreign currency.
Wanda is picking up the site through an unlisted Hong Kong unit, Wanda Commercial Properties (Hong Kong), or Wanda HK. St. Modwen first announced the deal on June 21, saying it expected the transaction to be completed later in the summer, following the demolition of the former flower market standing on the site.
Under the terms of the agreement, Wanda will take over the development of the Nine Elms Square project, which has received outline approval for three residential towers of between 32 and 54 storeys yielding 1,821 apartments. The site is directly adjacent to another Wanda project, the long-delayed One Nine Elms development.
Wanda HK also owns a 40 percent stake in the One Nine Elms project, in which listed Hong Kong unit Wanda Hotel Development holds the remaining 60 percent.
Wanda acquired the One Nine Elms site for £88.8 million in 2013, in the group’s first British property play, but has struggled to develop what market sources have told Mingtiandi is a challenging site. One Nine Elms is already on its third general contractor after two previous engineering firms walked away.
By Courtesy of Mingtiandi