(Yicai) May 28 -- Asia-focused PE Firm PAG is not considering buying Dalian Wanda Group’s almost 500 shopping malls for about CNY100 billion (USD13.8 billion), contrary to a market rumor, a person familiar with the matter said.

The rumour is factually incorrect on a number of points, the person told Yicai. Wanda owns fewer than 300 Wanda Plazas and each is valued at around CNY1.5 billion (USD200 million) based on previous sales, adding up to about CNY450 billion (USD62.1 billion), the source said.

Cash-strapped Wanda has sold assets to raise funds over the past year. It has sold 15 Wanda Plazas, including several in tier-one cities such as Guangzhou and Shanghai.

“Promoting an asset-light strategy is Wanda's long-term plan, but when it comes to asset transfers, it will seek an appropriate price,” the person said, adding that the property developer has no reason to sell high-quality assets at a price far below their market value.

A PAG-led investor group that included the Abu Dhabi Investment Authority spent CNY60 billion (USD8.3 billion) for a 60 percent stake in Newland Commercial Management, Wanda’s shopping mall unit, at the end of March. Newland is the holding company of Zhuhai Wanda Commercial Management Group, a commercial property management unit of the Beijing-based developer.

In addition to that, Wanda’s financial situation is improving considering recent government policies to support the real estate sector, the source pointed out. 

March’s deal did not include a bet-on clause or one requiring Zhuhai Wanda to go public at any specific time. It was agreed that Newland would develop independently and representatives of the investors would join its board.

Wanda and PAG have a good relationship, so various future partnerships cannot be ruled out, the source said.

Editor: Martin Kadiev