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Equity Bottom-Up

Dalian Wanda Commercial Properties / Equity Bottom-Up

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<li>Cash-strapped developer Dalian Wanda Group Co. Ltd. can breathe a temporary sigh of relief having reached an agreement with investors to avoid an immediate repayment of more than 40 billion yuan ($5.6 billion) for an unfulfilled flotation of its property management unit.</li>
<li>Wanda faced having to repay a group of investors their 38-billion-yuan investments plus interest under a 2021 agreement if the developer failed to list its light-asset unit, Zhuhai Wanda Commercial Management Group Co. Ltd., by the end of this year.</li>
<li>As Zhuhai Wanda’s listing plan failed despite <a href="https://www.caixinglobal.com/2023-06-30/wanda-unit-files-fourth-hong-kong-ipo-application-102070706.html" target="_blank" rel="noopener">four attempts</a>, the repayment obligation became a ticking time bomb hanging over the company, which is struggling with capital drains amid plunging sales.</li>
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Cash-strapped developer Dalian Wanda Group Co. Ltd. can breathe a temporary sigh of relief having reached an agreement with investors to avoid an immediate repayment of more than 40 billion yuan ($5.6 billion) for an unfulfilled flotation of its property management unit.
Wanda faced having to repay a group of investors their 38-billion-yuan investments plus interest under a 2021 agreement if the developer failed to list its light-asset unit, Zhuhai Wanda Commercial Management Group Co. Ltd., by the end of this year.
As Zhuhai Wanda’s listing plan failed despite four attempts, the repayment obligation became a ticking time bomb hanging over the company, which is struggling with capital drains amid plunging sales.


Wanda Reaches Deal with Investors to Avoid $5.6 Billion Immediate Repayment 

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Credit

Dalian Wanda Commercial Properties / Credit

<ul><li>Dalian Wanda Commercial Management (DWCM) signed a new investment agreement with pre-IPO investors of Zhuhai Wanda Commercial Management (ZWCM) to reinvest the proceeds from the redemption of pre-IPO investments in ZWCM.</li><li>We estimate that the put for pre-IPO investment would be cRMB46bn.</li><li>The development is in line with our expectation that DWCM can avoid the sizeable cash flow for the redemption of pre-IPO investments. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Dalian Wanda Commercial Management (DWCM) signed a new investment agreement with pre-IPO investors of Zhuhai Wanda Commercial Management (ZWCM) to reinvest the proceeds from the redemption of pre-IPO investments in ZWCM.We estimate that the put for pre-IPO investment would be cRMB46bn.The development is in line with our expectation that DWCM can avoid the sizeable cash flow for the redemption of pre-IPO investments. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DALWAN: First takes on the settlement of pre-IPO investments

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The property management unit of Dalian Wanda Group Co. wants to push back the maturity of a $600 million bond by nearly a year, highlighting the property conglomerate’s deepening liquidity crunch.
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Dalian Wanda Commercial Management Group Co. said Tuesday that it is seeking to delay the payment on the 7.25% note by 11 months due to liquidity pressures.
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The 10-year dollar-denominated notes, issued by its subsidiary Wanda Properties International Co., are set to mature on Jan. 29, 2024, Wanda Commercial, the guarantor of the bond, said in a filing to the Hong Kong stock exchange.
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The property management unit of Dalian Wanda Group Co. wants to push back the maturity of a $600 million bond by nearly a year, highlighting the property conglomerate’s deepening liquidity crunch.


Dalian Wanda Commercial Management Group Co. said Tuesday that it is seeking to delay the payment on the 7.25% note by 11 months due to liquidity pressures.


The 10-year dollar-denominated notes, issued by its subsidiary Wanda Properties International Co., are set to mature on Jan. 29, 2024, Wanda Commercial, the guarantor of the bond, said in a filing to the Hong Kong stock exchange.



Wanda Unit Seeks Extension for $600 Million Dollar Bonds 

<ul><li>Subsequent to the withdrawal from property developments in 2020, Dalian Wanda Commercial Management (DWCM) is more of a commercial property investor with growing recurring rental income from its expanding IP portfolio.</li><li>In 1H23, recurring income from investment property leasing and management accounted for 91% of DWCM’s revenue.</li><li>Hence, its operating performance has been more resilient than that of developers.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Subsequent to the withdrawal from property developments in 2020, Dalian Wanda Commercial Management (DWCM) is more of a commercial property investor with growing recurring rental income from its expanding IP portfolio.In 1H23, recurring income from investment property leasing and management accounted for 91% of DWCM’s revenue.Hence, its operating performance has been more resilient than that of developers.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Dalian Wanda Group Co.’s property management unit expects to scrape up enough cash to pay off a 2 billion yuan ($281 million) note due this Saturday, the company said.</li><li>But with 8.9 billion yuan of domestic notes and offshore bond due within two months, Dalian still needs to dump some of its shopping malls and hotels.</li><li>The troubled property-to-entertainment conglomerate was reported to be considering such moves earlier this week.</li></ul>

Dalian Wanda Group Co.’s property management unit expects to scrape up enough cash to pay off a 2 billion yuan ($281 million) note due this Saturday, the company said.But with 8.9 billion yuan of domestic notes and offshore bond due within two months, Dalian still needs to dump some of its shopping malls and hotels.The troubled property-to-entertainment conglomerate was reported to be considering such moves earlier this week.

Wanda Group Expects to Pay $281 Million Note Due Saturday

China

Dalian Wanda Commercial Management Group Co., Ltd. operates as a commercial property developer, owner, and operator. The Company develops and manages mixed-use property projects including retail, office, hotel, residential, restaurant, entertainment, and other projects. Dalian Wanda Commercial Management Group conducts businesses in China.

Dalian Wanda Commercial Properties (1567411D HK)

Dalian Wanda Commercial Properties (1567411D HK)

Wanda Reaches Deal with Investors to Avoid $5.6 Billion Immediate Repayment

Cash-strapped developer Dalian Wanda Group Co. Ltd. can breathe a temporary sigh of relief having reached an agreement with investors to avoid an...

Caixin Global

DALWAN: First takes on the settlement of pre-IPO investments

The development is in line with our expectation that DWCM can avoid the sizeable cash flow for the redemption of pre-IPO investments.

CMB International

Wanda Unit Seeks Extension for $600 Million Dollar Bonds

The property management unit of Dalian Wanda Group Co. wants to push back the maturity of a $600 million bond by nearly a year, highlighting the...

Caixin Global

DALWAN: Another Reality Check

In 1H23, recurring income from investment property leasing and management accounted for 91% of DWCM’s revenue. Subsequent to the withdrawal from...

CMB International

Wanda Group Expects to Pay $281 Million Note Due Saturday

Dalian Wanda Group Co.’s property management unit expects to scrape up enough cash to pay off a 2 billion yuan ($281 million) note due this...

Caixin Global