PAG led consortium’s $8.3 billion investment energizes Dalian Wanda’s mall unit

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In a move set to shake up the Chinese property market, a consortium of investors spearheaded by private equity powerhouse PAG has just injected a whopping $8.3 billion into Dalian Wanda’s mall unit. This hefty investment secures the consortium a commanding 60% stake in Newland Commercial Management, the holding company of Zhuhai Wanda Commercial Management Group Co, while Dalian Wanda retains the remaining 40%.

Joining PAG in this landmark deal are heavy hitters including CITIC Capital, the Abu Dhabi Investment Authority, Mubadala Investment Company, and Ares Management Corporation, marking a convergence of global investment titans eyeing a slice of China’s lucrative commercial property sector.

David Wong, partner and co-head of private equity at PAG, expressed confidence in the investment, citing Newland’s competitive edge and first-mover advantage in the market. “We like the competitive edge and first mover advantage that Newland has built and we think these advantages will allow it to generate stable and growing cash flow to investors,” said Wong.

Newland boasts an impressive portfolio, managing a staggering 496 large shopping malls across China. This extensive reach positions the company as a key player in China’s retail landscape, promising substantial returns for its investors.

This landmark investment follows the December signing of an investment framework between PAG and Dalian Wanda Commercial Management Group, signaling a strategic alignment between the two entities. Saturday’s agreement marks the implementation of this framework, paving the way for a new chapter in the evolution of Zhuhai Wanda Commercial Management.

With the backing of PAG and its consortium of investors, Dalian Wanda’s mall unit is poised for growth and expansion, setting the stage for a dynamic future in China’s commercial property market.

(Source: | Reuters | MSN)

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