Dalian Wanda Group has dropped plans to buy Nine Elms Square in London
Dalian Wanda Group has dropped plans to buy Nine Elms Square in London. The move by the Chinese giant comes amid pressure from Beijing as it tightens control over Chinese investment in overseas properties.
Dalian Wanda Group has said that it had scrapped plans to buy Nine Elms Square in London. The owner of the 10-acre (4-hectare) property, St. Modwen Properties, said that it had completed the 470 million pound ($605.6 million). It did not name the buyer. Wanda’s International Real Estate Center said that the ownership of the building belongs to a third party.
In order to restrict Wanda’s overseas acquisitions, Chinese banks have been asked to stop funding Wanda’s overseas acquisitions.
The Wanda Group, a property-to-entertainment giant has been one of the most affected businesses under China’s crackdown on capital outflows and overseas direct investment. The group is run by Wang Jianlin, one of China’s richest men.
The Chinese cabinet has decided to blacklist domestic companies that violated overseas investment rules. The cabinet said that it would limit overseas investment in property, hotels, entertainment, sports clubs and the film industry.
Another instance of heightened pressure from Beijing on outbound deals was witnessed when another of Wanda’s expected overseas deals, the proposed $1 billion purchase of U.S. TV production company Dick Clark Productions collapsed in March.
As the result of increasing financial crunch, Wanda agreed to sell 77 hotels to Chinese developer.