Magellan Development President Disputes Reports That Dalian Wanda Is Selling Its Stake In Vista Tower
Magellan Development is disputing a report that the under-construction Vista Tower is part of a $5B portfolio sale by Dalian Wanda Group. Reports surfaced last week that the Chinese developer is seeking a single buyer for five projects in Chicago, Los Angeles, Australia and London, amid increased regulatory pressure from the Chinese government.
Magellan President David Carlins told Crain's Chicago Business he received assurances from Dalian Wanda that reports on any sales of its assets are inaccurate, and that the company remains fully engaged in Vista Tower's construction. Dalian Wanda holds a $900M stake in Vista Tower, which will be Chicago's third-tallest building when it is completed in 2020. Magellan and Dalian Wanda secured $700M in construction financing for the 94-story tower in April.
The Chinese government has increased pressure on Dalian Wanda to slow the pace of its offshore real estate investments in recent months. In August, Dalian Wanda's hotel development group sold stakes in Vista Tower to Dalian Wanda Commercial Properties, fueling speculation that a sale of the firm's offshore real estate was in the works.
Carlins said 40% of Vista Tower's 406 condos are pre-sold, with two under contract for over $10M each.