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On Saturday, a consortium of investors led by private equity firm PAG unveiled a significant investment of $8.3 billion for a 60% stake in the mall unit of Chinese property giant Dalian Wanda.
Ownership Structure:
Under the agreement, Dalian Wanda will retain a 40% stake in Newland Commercial Management, the holding company of Zhuhai Wanda Commercial Management Group Co.
The prominent entities such as CITIC Capital, the Abu Dhabi Investment Authority, Mubadala Investment Company, and Ares Management Corporation are joining PAG in this landmark deal, signifying broad investor confidence in the venture.
Strategic Rationale:
David Wong, Partner and Co-Head of Private Equity at PAG, highlighted the appeal of Newland’s competitive edge and first-mover advantage in the market. He expressed confidence that these strengths would contribute to generating stable and growing cash flows for investors.
Newland manages an extensive portfolio of 496 large shopping malls across China, positioning it as a significant player in the country’s retail landscape.
Implementation of Previous Agreement:
The latest investment agreement follows an announcement in December, in which PAG and Dalian Wanda Commercial Management Group outlined plans to restructure Zhuhai Wanda Commercial Management. The agreement signed on Saturday implements this strategic framework.
