Dalian Wanda Commercial Properties seeking 12 billion yuan for expansion

Hong Kong-listed Dalian Wanda Commercial Properties Co Ltd - the mainland's biggest commercial real estate builder - is to apply for an A-share listing on the mainland next month to raise cash for expansion and acquisitions.

The company, controlled by Asia's richest man Wang Jianlin, aims to raise 12 billion yuan ($1.9 billion), as announced in July, but has yet to decide whether to float in Shanghai or Shenzhen.

"The A-share listing plan will guarantee our financing channels both in the offshore and onshore capital markets," said Liu Chaojun, vice-president and chief financial officer of Dalian Wanda Group Co Ltd. "Our core business is on the mainland, and we have a lot of supporters there."

Relevant documents are being prepared for the China Securities Regulatory Commission, and the company will proceed when initial public offerings resume.

Dalian Wanda Commercial Properties - the nation's largest commercial property owner by floor area - needs cash to fund the development of plazas and malls across the mainland following its rapid expansion in lower-tier cities.

As of June this year, the total number of Wanda Plazas - the company's prime commercial projects - stood at 112, with five launched this year alone. The group also operates 64 luxury hotels in 55 cities, according to its filing with the Hong Kong Stock Exchange on Wednesday.

The share price of Wanda Commercial Properties jumped 8 percent to HK$48 apiece in Hong Kong on Thursday, edging back to its IPO price, after the company said its net profit rose 4.6 percent in the first half of this year. The surge was attributed to an increase in property leasing income from five new shopping malls.

Liu said the high volatility in the stock markets may drive investors back into the property market to avoid risks.

Qi Jie, director and president of Wanda Commercial Properties, said the latest cuts in interest rates and banks' reserve-requirement ratio by the People's Bank of China will have a positive impact on the property market.

However, he said the mainland's property market remains on the downward trend albeit at a slower pace.

Qu Dejun, director and executive president of Wanda Commercial Properties, said the company would actively explore going into asset-light model and asset recycling business. "The higher return for asset-light model recycling will guarantee profits for the company," said Qi. As for cooperation with China Vanke Co Ltd, he declined to disclose details, saying that discussions were ongoing.

Dalian Wanda Group Co Ltd is in the midst of an acquisition spree, having just bought US-based World Triathlon Corp - the organizer of the Ironman triathlons - for $650 million.

It said on Thursday another "major acquisition" will follow in a month or two.

celia@chinadailyhk.com

Dalian Wanda Commercial Properties needs cash to fund its development of plazas and malls across the mainland following its rapid expansion in lower-tier cities. The floatation in the mainland bourse will guarantee its fundraising channel in the onshore capital market. Provided to China Daily

(HK Edition 08/28/2015 page11)