Wang Jianlin ＂went ashore＂？

Wang Jianlin could finally breathe a sigh of relief.

"Daily Economic News" reporter learned from the official website of Wanda Group that on December 12, Pacific Alliance Investment Group(PAG)And Dalian Wanda Business Management Group(Hereinafter referred to as Wanda Business Management)Joint announcement of the signing of a new investment agreement. PAG Investment Group will work with other investors to redeem its investment in Zhuhai Wanda Commercial Management Group upon the expiration of its investment redemption period in 2021(Hereinafter referred to as Zhuhai Wanda Business Management)And reinvest.

It is reported that the investment amount of existing investors in Zhuhai Wanda Commercial Management in August 2021 is about 38 billion yuan, of which the investment amount of PAG Investment Group is about 2.80 billion US dollars(About 18 billion RMB), Existing investors enjoy redemption rights in the original investment arrangement. According to the new agreement, Wanda Commercial Management holds 40% of the shares, which is the single largest shareholder. Several existing and new investor shareholders such as Pacific Alliance Investment Group participate in the investment, with a total shareholding of 60%. On the issue of listing, the new investment will no longer set up a gambling agreement.

This also means that there are 18 days left until the final IPO time.The gambling pressure of Wanda Commercial Management has been basically eliminated.

It is worth noting that,This investment is also a workout.Therefore, Wanda has also paid a certain proportion of the equity price.

First, exchange of equity for investor consent

For Wanda Commercial Management, by the end of 2023, the greatest pressure will be the arrival of the listing and betting period.

In August 2021, Wanda Commercial Management and Zheng Yutong family, Country Garden, CITIC Capital, Ant, Tencent, Pacific Alliance Investment Group and other 22 institutional investors signed a gambling agreement. The above investors invested about 38 billion yuan in Zhuhai Wanda Commercial Management, of which Pacific Alliance’s investment is about 2.80 billion US dollars(About 18 billion RMB)…

According to the gambling agreement, if Zhuhai Wanda Commercial Management fails to complete the listing work by the end of 2023, Wanda Commercial Management is obliged to repurchase shares from the above investors, and the repurchase amount exceeds 30 billion yuan.

According to the latest agreement signed between Pacific Alliance Investment Group and Wanda Commercial Management, upon the expiration of the investment redemption period in 2021, Wanda Commercial Management will be required to redeem the investment before Pacific Alliance Investment Group will cooperate with other investors to reinvest in Zhuhai Wanda Commercial Management.

Image source: Wanda Group official website

PAG is an Asia-focused private equity firm with a portfolio of private equity, real estate, and credit and markets investments. PAG’s more than 300 investment professionals are located in 15 offices around the world and manage more than $55 billion of assets for nearly 300 institutional fund investors worldwide.

An industry insider pointed out to every reporter that Zhuhai Wanda Commercial Management raised 38 billion yuan at the Pre-IPO price of 25 yuan per share. According to the gambling agreement, Wanda Commercial Management not only has to redeem 38 billion yuan, but also needs to pay 12% interest. One way to pay for this redemption is in cash, and the other way is equity replacement. From the current situation, Wanda is more likely to use equity replacement.

After the signing of this agreement, Zhuhai Wanda Commercial Management is 40% owned by Wanda Commercial Management, making it the single largest shareholder. Pacific Alliance Investment Group and several other existing and new investors have participated in the investment, with a total shareholding of 60%.

According to the prospectus updated on June 28, Zhuhai Wanda Commercial Management is currently owned by Wanda Commercial Management, Zhuhai Wanying, Yinchuan Wanda, the board of directors and senior management personnel, and investors, respectively, holding about 69.99%, 8.83%, 0.01%, 0.02%, and 21.17% of the shares. Among them, Zhuhai Wanying and Yinchuan Wanda are also wholly-owned subsidiaries of Wanda Commercial Management. According to this, Wanda Commercial Management jointly holds about 78.83% of Zhuhai Wanda’s shares.

This also means that,Wanda Commercial Management obtained investor consent in the form of equity replacement.However, the specific shareholding ratio of PAG and other institutional investors is not yet known.

In response to the signing of the new agreement, Wanda Commercial Management said that it will work with important shareholders such as Pacific Alliance Investment Group to further optimize the corporate governance of the company, maintain the stability of the management team, and jointly support the long-term development of the company. The new agreement also reflects investors’ high recognition of Zhuhai Wanda Commercial Management’s growth potential and its operating capabilities.

Since the above existing investors invested in 2021, Zhuhai Wanda Business Management has exceeded the performance target for three consecutive years, with after-tax income of 23.50 billion yuan in 2021, 27.10 billion yuan in 2022, and 27.10 billion yuan in 2023(Estimated)29.30 billion yuan, with an average annual growth of about 12%. After-tax profit is 5.30 billion yuan in 2021, 7.50 billion yuan in 2022, and 2023(Estimated)9.50 billion yuan, an annual growth rate of about 34%. In the past three years, Zhuhai Wanda Commercial Management has paid a total of about 10 billion yuan in taxes, and the dividends to shareholders are 4.60 billion yuan in 2021, 6.70 billion yuan in 2022 and 2023(Estimated)8.50 billion yuan.

As of November this year, Zhuhai Wanda Commercial Management operates 494 large commercial centers, of which 290 are commercial centers owned by Dalian Wanda and 204 are third-party asset-light commercial centers. In the past two years, the number of commercial centers managed by Zhuhai Wanda Commercial Management has increased from 417 to 494, an average annual growth rate of about 9%. Zhuhai Wanda Commercial Management is now the world’s largest commercial management company in terms of commercial area under management.

2. Selling items other than the "asset package" to activate cash flow

In fact, this year,In order to revive its cash flow, Wanda Group has sold its assets several times.

On July 23 this year, Wang Jianlin will film in Beijing(SZ002739, stock price 12.45 yuan, market value 27.133 billion yuan)The controlling shareholder of Beijing Wanda Investment Co., Ltd. transferred 49% of the shares to Shanghai Ruyi Investment Management Co., Ltd. for 2.262 billion yuan(Hereinafter referred to as Shanghai Ruyi)…

On December 6, Wanda Film announced again that the actual controller, Wang Jianlin, plans to transfer his 51% stake in Beijing Wanda Investment Co., Ltd. to Shanghai Ruyi.

Image Source: Wanda Film Announcement

On the same day, according to the surging news, Zhuhai Wanda Commercial Management revealed in the process of communication with investors that Wanda Group plans to sell its Wanda Plaza in first- and second-tier cities in exchange for liquidity, and is negotiating with insurance institutions.

This year, the sale of Wanda Plaza is not the first time. The most recent one was on October 8 this year, when Guangxi Hepu Wanda Plaza was sold to Guangxi Beihai local real estate enterprise Hepu Wanghe Real Estate Co., Ltd. According to public information, in April 2021, Wanda Plaza was stationed in Hepu, Beihai, and the project officially opened in January 2022. Hepu Wanda Plaza has also become Wanda’s first county Wanda Plaza in Guangxi.

The transfer of the project comes just a week after Wanda Commercial Management transferred a 100% stake in its Shanghai project, Shanghai Wanda Plaza Real Estate Co., Ltd. According to Qichacha, on September 28, Shanghai Wanda Plaza Real Estate Co., Ltd. underwent industrial and commercial changes. The original wholly-owned shareholder Wanda Commercial Management withdrew and added Shanghai Jiayuan Management Consulting Partnership(Limited Partnership)Wuhu Puyu Equity Investment Partnership(Limited Partnership)At the same time, the legal representative was changed from Zhang Jing to Fengshun, and the main personnel were also changed.

The Shanghai Jiayuan Management Consulting Partnership is held 90.91% by our investment holding limited liability company, and our life insurance joint stock company is indirectly held.

The Shanghai Zhoupu Wanda Plaza is also the fourth Wanda Plaza that PICC has taken over this year. In May this year, PICC took over three projects from Wanda Commercial Management: Shanghai Songjiang Wanda Plaza, Jiangmen Taishan Wanda Plaza and Qinghai Xining Wanda Plaza. In addition, China Huarong took over the Wanda Plaza project on Xinhan Street in Wuhan.

Every time the reporter combed the Zhuhai Wanda Business Management prospectus, he learned that,The above-mentioned project subject companies are not included in their listed assets under management.For example, Shanghai Wanda Plaza Real Estate Co., Ltd. does not appear in the prospectus, but a company named Shanghai Wanda Plaza Commercial Management Co., Ltd. appears.

This article is from the WeChat official account:Each property (ID: Real-estate-circle)Author: Chen Li, Editor: Wei Wenyi