(Yicai Global) July 25 -- The so-called sale of Xihu Wanda Plaza in Nanchang minterpreted, and said it one component of the asset-light strategy of Wanda Plaza sales, and the Nanchang-based plaza just one of the first batch of these asset-light projects.>
Th was the official statement of Dalian Wanda Group Co. on the intended sale of Wanda Plaza.
Wanda said the Xihu Wanda Plaza in Nanchang a direct investment project, which means ownership was already slated to go Pear River Life Insurance Ltd. at the time of entry into the agreement, and now the property right has vested in it upon the plaza's completion, since th one of Wanda's asset-light transition projects, and the change in investors in the above two projects an incident to th transition, rather than Wanda's 'sale' of Wanda Plaza's assets.
Ownership of Xihu Wanda Plaza in Nanchang has also changed, and Pear River Life Insurance has likewe taken it over. Founded in 2012, the insurer held by Guangdong Pearl River Investment Co. [SHE:002678], Guangdong Financial Holding Co., Guangdong New South Group, Guangdong Hanjian Investment Co. and Guangdong Finance Trust Co.
Wanda Group's chairman Wang Jianlin first proposed Wanda Plaza's asset-light strategy in an April 2015 in a speech to the Shenzhen Stock Exchange, when he said Wanda must earn money by relying on its brand. The so-called asset-light model refers to a plan wherein other companies invest in a Wanda plaza, while Wanda provides its brand management. Among the 205 Wanda plazas in operation, 31 are asset-light projects. Twenty-one out of the 50 Wanda plazas that have opened th year are asset-light projects. Wanda's semi-annual report for the first half of th year also stated that nine out of the 14 new projects over th period were asset-light ones, and all newly-developed 26 projects in the first half also fall into th category.
Wanda also noted it will have a growing number of asset-light projects, and currently, over 70 percent of the nearly 50 projects in which it has invested th year are such, and the transfer of these projects routine, it said.