Wang Jianlin’s Wanda unit gets a US$8.4 billion capital injection from PAG-led consortium

Wang’s Newland Commercial Management unit has received close to 60 billion yuan (US$8.4 billion) from a consortium comprising PAG, Trustar Capital, Ares Management, Abu Dhabi Investment Authority (ADIA)’s wholly-owned Platinum Peony unit, and the Mubadala Investment Company, according to separate statements published on Saturday.

After the capital injection, the five investors will own a 60-per cent combined stake in Newland, while Wang’s Dalian Wanda Commercial Management Group will hold the remaining 40 per cent.

Newland, founded in January with 16.21 billion yuan in registered capital, is an investment holding company that controls Zhuhai Wanda Commercial Management, an operator that manages 496 large shopping malls across China.

The capital injection followed the restructuring last December of Zhuhai Wanda by PAG and Wanda Commercial, which contained the provision for PAG and its partners to raise their stake to 60 per cent. Wanda Commercial would cut its stake to 40 per cent from 78.9 per cent, under the agreement.

Last July, the group warned of a funding short fall just a few days before redeeming a US$400 million bond. In November, it won the consent from bondholders to extend the maturity of a US$600 million bond by 11 months.

The latest investment “reflects the expectation and recognition that global institutional investors have for the long term development of Newland,” said PAG’s partner David Wong. “We think Newland has strong competitive barriers and significant first-mover advantage that can support its steady business performance in the long term, as well as generate good returns for investors.”

Trustar Capital’s chairman Zhang Yichen also expressed confidence in Newland’s competitive advantage and development outlook, adding that he is “consistently optimistic about China’s consumer and retail segments.”