Chinese property developer Dalian Wanda Group plans to sell 48 shopping malls to raise cash amid a challenging real estate market.
As part of the deal, a joint venture led by Hong Kong investment firm PAG will acquire shares in 48 regional companies that back Wanda Plaza malls across China.
The other companies in the joint venture are Tencent Holdings, Sunshine Life Insurance, Taikang Life and a unit of e-commerce giant JD.
Wanda Group will receive 50 billion yuan (US$6.94 billion) from the transaction. The deal is expected to close in the second half of this year.
Founded in 1988 and headquartered in Beijing, Wanda Group is one of China’s largest real estate developers. The group also operates a film company, a sports business and a children’s entertainment company.
Wanda has been focusing on managing Wanda Plaza facilities rather than owning them since 2015. At least 40 per cent of Wanda Plaza malls are already owned by outside companies.
The group is expected to continue operating the facilities after this transaction. It managed 513 Wanda Plazas nationwide at the end of last year.
Last month, Wanda agreed to sell its hotel management arm.
