The delay is the latest setback for Wanda, which has been selling assets amid scrutiny from Chinese authorities, who are clamping down on capital outflows to protect the yuan from depreciating.
SHANGHAI: Billionaire Wang Jianlin’s Dalian Wanda Group Co scrapped plans to buy a land plot in London for 470 million pounds (US$606mil) amid the Chinese government’s intensifying scrutiny of overseas investments.
Wanda’s International Real Estate Center is no longer in pursuit of the 10-acre Nine Elms Square land, the Chinese company said in a statement to Bloomberg. In June, Wanda agreed to buy the land from a venture between St Modwen Properties Plc and Vinci Plc.
The move is the latest sign that Wang, who was one of China’s most prolific buyers of overseas assets until last year, is downsizing. Last month, the conglomerate agreed to sell most of its hotels and theme-park assets to Sunac China Holdings Ltd. and Guangzhou R&F Properties Co. for about US$9.5bil.
Big Chinese dealmakers such as Wanda, Anbang Insurance Group Co, Fosun International Ltd and HNA Group Co have been under increasing scrutiny this year as the government steps up its clampdown of capital outflows to protect the yuan from weakening further.
Last week, the government formally laid down new rules on overseas investments, making explicit its de facto campaign against “irrational” acquisitions of assets in industries ranging from real estate to hotels and entertainment.
Still, St Modwen said Monday that the land in Nine Elms Square site has been sold, though it didn’t identify the buyer.- Bloomberg
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