Weekly Transaction Update - 2nd February
The $1.13bn sale by Wanda of the 1 Alfred Street Sydney and Gold Coast Jewel projects stole the show this week with a total of 12 transactions and $1.8bn of real estate changing hands'
After much speculation, Dalian Wanda finally concluded the sale of its two major projects to the Yuhu Group for $1.13bn. With both projects mid way through construction, the deal requires Yuhu Group to take on the debt owed to Wanda of $815M together with $315M of cash. The Gold Coast project was 45 per cent owned by Chinese-backed group Ridong who also sold its interests in the sale to Yuhu.
The sale of the projects came amid mounting pressure from Beijing for Wanda to reduce its debt profile. The group also sold its interests in one of the largest luxury residential projects under development in London, the One Nine Elms project on the south bank of the River Thames for about £59 million ($102 million) two weeks ago.
Yuhu Group have invested over $540m in acquiring interests in Eastwood Shopping Centre, 115 Sailors Bay Rd Northbridge, Pymble Corporate Centre, 20 Berry St North Sydney and 1 George Street North Strathfield.
The pressure from China to ensure groups which funded massive expansion plans with debt has also driven HNA group to sell its 1 York Street building to Blackstone. HNA advised that it had sold the asset for $205m, pocketing an $88 million profit on the $117 million it paid in January 2017. HNA are under significant pressure to boost its cash reserves with about $US20bn in bonds issued by HNA due to mature in 2018 or 2019.
In December 2016, HNA Group also acquired the Aitken Hill Conference Centre in Craigburn for $120M and whilst news about a possible sale of this asset has not been heard, we would expect HNA would be sellers.
A Scroll through the list below or head to RE-Intel for further details.
* indicates unconfirmed price