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Cash-starved Chinese property group Dalian Wanda sells Shanghai luxury hotel to Indonesian billionaire

  • The Dalian Wanda Group offloaded the 193-room Shanghai Wanda Reign luxury hotel, located in Shanghai’s famed Bund for an undisclosed sum
  • Media reports said the transaction took place at a price of between 1.44 billion and 1.66 billion yuan (US$204 million to US$234 million).

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Dalian Wanda Group’s Wanda Plaza building is pictured in Beijing, China. Photo: Reuters
The cash-strapped Dalian Wanda Group, a major Chinese conglomerate and the country’s largest shopping mall operator, has sold its luxury hotel in Shanghai to Indonesian pulp and paper billionaire Sukanto Tanoto as it looks to overcome a liquidity crisis.
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The 193-room luxury hotel, opened in June 2016, is located in Shanghai’s famed Bund waterfront and was acquired last month by Singapore-based Pacific Eagle Real Estate, the property investment and development arm of Tanoto’s conglomerate, RGE Group.

“As a long-term investor, Pacific Eagle Real Estate is acquiring Shanghai Wanda Reign on the Bund Hotel for capital preservation,” a Pacific Eagle Real Estate spokesperson said.

While the acquisition price was undisclosed, media outlet Mingtiandi quoted market sources saying it had changed hands at a price of between 1.44 billion and 1.66 billion yuan (US$204 million and US$234 million).

A picture of Sukanto Tanoto. Photo: Facebook/ Sukanto Tanoto
A picture of Sukanto Tanoto. Photo: Facebook/ Sukanto Tanoto
Wanda Reign will be Pacific Eagle’s second hotel investment after the 304-room Mondrian Duxton in Singapore, inaugurated last July. With this acquisition, the company now owns four assets in China, including residential developments and an office tower.
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The Wanda brand will be retained following the sale, and the hotel will continue to be managed by Dalian Wanda’s hotel division, according to local media.

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