Dalian Wanda Selling Its $900M Stake In Vista Tower After All [Update]
Dalian Wanda Group is seeking a buyer for its stake in Vista Tower, Bloomberg reports. The news comes amid growing regulatory pressure from the Chinese government on companies like Dalian Wanda to slow the pace of their offshore real estate investments, and two months after Magellan Development, Dalian Wanda's partner in the 94-story tower, denied reports Dalian Wanda was seeking a buyer.
Vista Tower is one of Dalian Wanda's two remaining overseas holdings. The other, a $1.2B luxury condo and hotel complex in Beverly Hills, is also for sale. Earlier this month, Dalian Wanda sold Nine Elms, its London residential and hotel project, at a 25% discount to its valuation. Two other developments in Sydney and in Australia's Gold Coast are under contract or seeking buyers.
All of this activity comes as Dalian Wanda founder Wang Jianlin is faced with a March 31 deadline to pay $510M in bank loans used to finance the firm's decade-long overseas expansion. In another sign of Dalian Wanda's development reversal, Tencent Holdings is buying a 14% stake in Wanda Commercial Properties. The stake is valued at $5.4B.
Last November, Magellan President David Carlins said Dalian Wanda remained a fully engaged partner in Vista Tower. Bisnow reached out to Carlins for comment, who provided the following statement:
“It’s somewhat clear that our partner on the Vista project, the Dalian Wanda Group, wishes to divest its international real estate projects including those in London and Australia. However, we’ve also been informed that they may remain our partner in Vista to its successful conclusion. Like any responsible and astute corporation, Dalian Wanda is examining its options. In the meantime, the project remains on schedule and fully funded. We’ve just finished pouring our 31st level, sales activity remains strong and the building is really taking shape.”
UPDATE, Jan. 30, 4:30 P.M. CT: Comments by Magellan Development President David Carlins were added.