Deal Reporter
Wanda Commercial Properties [HKG:3699], the property division of China-based conglomerate Dalian Wanda Group, is seeking to acquire two residential property developers in France and Germany, each with assets valued at between USD 800m and USD 1bn, Geffrey Liu, CFO of Wanda Group said.
Assets owned by the targets could include hotels, apartments and other investment properties. The company plans to make two acquisitions per year starting from 2015, Liu said. The company will focus on international cities in Europe and the US with effective and transparent legal systems as well as the availability of professional advisory services in its search for targets.
The goal is also in line with the company’s strategy of having overseas sales account for 20% of the total sales in 2020, he noted.
Wanda Commercial is China’s largest developer, owner and operator of commercial properties, as well as the largest owner and operator of luxury hotels by market capitalization.
Dalian Wanda Group announced last January it is investing USD 1bn in a prime property development close to Sydney Harbour, its second major deal in Australia after a USD 900m investment in a joint venture project on the Gold Coast to develop a luxury hotel and service apartments. Over the past two years, the group has also invested USD 2bn in London and Madrid hotels and properties.
According to the company’s press release, Dalian Wanda Commercial Properties and its subsidiaries clocked a revenue of CNY 107.871bn (up by 24.31% as compared with 2013) and a core profit (net of fair value gains of investment properties) of CNY 14.824bn in 2014, representing an increase of 14.04% compared to 2013. In 2014, the group realized earnings per share of CNY 6.51.