Cash-starved Chinese property group Dalian Wanda sells Shanghai luxury hotel to Indonesian billionaire

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The Dalian Wanda Group offloaded the 193-room Shanghai Wanda Reign luxury hotel, located in Shanghai’s famed Bund for an undisclosed sum

Media reports said the transaction took place at a price of between 1.44 billion and 1.66 billion yuan (US$204 million to US$234 million).

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Dalian Wanda Group’s Wanda Plaza building is pictured in Beijing, China. Photo: Reuters

Salina Li

Published: 6:30pm, 3 Jan 2024Updated: 7:20pm, 3 Jan 2024

The cash-strapped Dalian Wanda Group, a major Chinese conglomerate and the country’s largest shopping mall operator, has sold its luxury hotel in Shanghai to Indonesian pulp and paper billionaire Sukanto Tanoto as it looks to overcome a liquidity crisis.

The 193-room luxury hotel, opened in June 2016, is located in Shanghai’s famed Bund waterfront and was acquired last month by Singapore-based Pacific Eagle Real Estate, the property investment and development arm of Tanoto’s conglomerate, RGE Group.

“As a long-term investor, Pacific Eagle Real Estate is acquiring Shanghai Wanda Reign on the Bund Hotel for capital preservation,” a Pacific Eagle Real Estate spokesperson said.

While the acquisition price was undisclosed, media outlet Mingtiandi quoted market sources saying it had changed hands at a price of between 1.44 billion and 1.66 billion yuan (US$204 million and US$234 million).

A picture of Sukanto Tanoto. Photo: Facebook/ Sukanto Tanoto

Wanda Reign will be Pacific Eagle’s second hotel investment after the 304-room Mondrian Duxton in Singapore, inaugurated last July. With this acquisition, the company now owns four assets in China, including residential developments and an office tower.

The Wanda brand will be retained following the sale, and the hotel will continue to be managed by Dalian Wanda’s hotel division, according to local media.

Cash-starved Chinese property group Dalian Wanda sells Shanghai luxury hotel to Indonesian billionaire

The Dalian Wanda Group offloaded the 193-room Shanghai Wanda Reign luxury hotel, located in Shanghai’s famed Bund for an undisclosed sum Media reports said the transaction took place at a price of between 1.44 billion and 1.66 billion yuan (US$204 million to US$234 million).

The Dalian Wanda Group offloaded the 193-room Shanghai Wanda Reign luxury hotel, located in Shanghai’s famed Bund for an undisclosed sum

Media reports said the transaction took place at a price of between 1.44 billion and 1.66 billion yuan (US$204 million to US$234 million).