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Billionaire Wang Jianlin’s Wanda Group sells Chicago tower as it continues to trim multibillion-dollar debt
- Wanda Hotel, a unit of Wanda Group, is selling the uncompleted Vista Tower to Chicago-based Magellan Parcel
- Sale of 101-storey residential-cum-hotel development to yield a net gain of US$12.1 million
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Dalian Wanda Group, controlled by Chinese billionaire Wang Jianlin, is selling another overseas asset to pare its multibillion-dollar debtload.
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Its Hong Kong-listed unit Wanda Hotel Development has agreed to sell its 90 per cent stake in the 101-storey Vista Tower for US$270 million to Chicago-based real estate company Magellan Parcel, according to a stock exchange filing on Thursday.
The sale will generate a net gain of HK$94 million (US$12.1 million), it added, and hand Magellan Parcel full ownership of the luxury residential-cum-hotel currently under construction in Chicago.
The disposal will help reduce the current and future indebtedness of the group, the company said in the filing. Wanda bought the Chicago site in 2014 and planned to invest US$900 million on the project comprising 393 condominium units and 192 hotel rooms.
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Wanda Group had total debts of nearly 20 billion yuan (US$2.9 billion) at the end of March, including 12 billion yuan in short-term nature, according to the latest report by local rating agency, China Chengxin International Credit Rating.
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