The Tragic Real Estate Billionaire: Forced to Sell Commercial Centers to Pay off Debts, Assets Vanishing by 985 Trillion VND

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Mới đây, the Dalian Wanda Group has announced the sale of its mall division for 60 billion Chinese yuan, equivalent to 8.3 billion USD. This move is aimed at restructuring the company and avoiding the risk of default. The deal, signed in line with the reorganization plan for Zhuhai Wanda, a subsidiary of the group, was put forth in December 2023.

Wanda’s Restructuring Efforts

According to Wanda’s statement, a consortium led by PAG will control 60% of the shares in Newland Commercial Management, formerly Zhuhai Wanda Commercial Management Group. The company currently manages 496 large-scale shopping centers in 230 cities across China, with a total area of up to 70 million square meters.

Bi kịch tỷ phú bất động sản 69 tuổi phải bán tháo mảng trung tâm thương mại để trả nợ, tài sản bốc hơi 985 nghìn tỷ đồng
Tổng giá trị tài sản của tỷ phú Wang Jianlin (tỷ USD)

A Financial Toll

Founding billionaire Wang Jianlin, 69 years old, had to relinquish control of Zhuhai Wanda in December 2023 as part of an agreement to avoid penalties and debt repayment to investors. The initial terms of the agreement stipulated that Wanda would have to repay investors 30 billion Chinese yuan, equivalent to 4.2 billion USD, plus interest if Zhuhai Wanda failed to conduct an Initial Public Offering (IPO) by the end of 2023.

A Compensatory Measure

Therefore, Wang Jianlin’s decision to sell off the company’s mall division is seen as a form of compensation to investors and a means to avoid debt repayment in the face of a capital shortage. Bloomberg reported that Wanda was once considered one of China’s renowned real estate conglomerates due to its focus on commercial real estate and mall management. However, with tighter credit management in the real estate sector in China and the associated increase in borrowing costs, Wanda faced significant capital pressure.

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Drastic Wealth Decline

Wang, formerly regarded as the richest person in Asia, with assets worth 46.1 billion USD in 2015, now holds only 6.4 billion USD, a decrease of 39.7 billion USD, equivalent to 985 trillion VND or a 86% drop in value.

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