Dalian Wanda to Spend $1 Billion on Sydney Commercial ProjectMichelle Yun
Dalian Wanda Commercial Properties Co., the property company of Chinese billionaire Wang Jianlin, plans to invest about $1 billion in a Sydney high-end office and hotel project.
Two of its subsidiaries, including Wanda Hotel Development Co., agreed to buy Gold Fields House at Sydney’s Circular Quay for A$414.7 million ($327.6 million) from Blackstone Group LP, according to company statements yesterday and today. The property group also agreed to acquire nearby Fairfax House for A$73 million, Wanda Hotel said.
The acquisitions add to Dalian Wanda’s expanding overseas portfolio, which holds assets in cities including London, Madrid and Chicago. Chinese property firms and insurance companies are driving cross-border commercial real estate deals, which reached about $700 billion last year.
Wanda Commercial shares gained 5.1 percent, the biggest gain since the company sold shares in Hong Kong last month, at the close of trading. Wanda Hotel rose 6.3 percent, the most in a month.
The two Sydney buildings will be redeveloped to include a 185-meter (607-foot) tower and a 160-room five-star hotel, according to a statement posted on Wanda Commercial’s website. It’s the company’s second investment in Australia after the purchase of a property in Gold Coast in August. It said then it planned to invest $900 million to turn the project into a luxury hotel and serviced apartments.
The sale of Gold Fields House is expected to be completed in March, and Jones Lang LaSalle Inc. and CBRE Group Inc. advised on the deal, according to a Blackstone statement today.