PAG-led consortium acquires 60% stake in Wanda's mall unit for $8.3 billion

In a major move within the Chinese property sector, Dalian Wanda, a prominent developer, has announced the sale of 60 per cent stake in its mall unit to a consortium of investors led by private equity firm PAG. The deal, valued at $8.3 billion, reflects a strategic repositioning of assets within Dalian Wanda's portfolio.

Under the terms of the agreement, Dalian Wanda will retain 40 per cent ownership interest in Newland Commercial Management, the holding company of Zhuhai Wanda Commercial Management Group Co. Alongside PAG, notable participants in this investment venture include CITIC Capital, the Abu Dhabi Investment Authority, Mubadala Investment Company, and Ares Management Corporation.

David Wong, Partner and Co-Head of Private Equity at PAG, stressed on the attractiveness of Newland's competitive positioning and its pioneering status in the market. With a portfolio encompassing 496 major shopping malls across China, Newland is poised to deliver stable and expanding cash flows to its investors.

The transaction follows a prior investment framework established in December between PAG and Dalian Wanda Commercial Management Group, signalling a concerted effort to restructure Zhuhai Wanda Commercial Management. The execution of this agreement underscores the commitment of both parties to capitalise on emerging opportunities within the retail landscape.

(With Reuters inputs)