Wanda Group Will Not Withdraw From Real Estate Development, It Says
Dou Shicong
/SOURCE : Yicai
Wanda Group Will Not Withdraw From Real Estate Development, It Says

(Yicai Global) Jan. 30 -- Dalian Wanda Group Co. refuted the rumor of its exit from the real estate industry today, calling it misleading, and clarifying that only its subsidiary Dalian Wanda Commercial Real Estate Co. announced its withdrawal from the real estate development business yesterday.

The rumor that Wanda Group will form a group to compete with internet giants, as media also reported, is likewise not true, it said, adding that the group will neither take sides nor harm other businesses.

Tencent partnered with retail giant Suning Business Group Co. [SHE:002024], real estate developer Sunac China Holdings Ltd. [HK:1918] and JD.Com Inc. [NASDAQ:JD] who have co-financed CNY34 billion (USD5.37 billion) to obtain 14 percent of shares in Wanda Commercial, with Wanda Group retaining control, per the announcement yesterday.

Wanda Commercial will be renamed Wanda Commercial Management Group, and will no longer ply real estate development, but become a purely management and operating company, the announcement said. The partners will also hasten the company's listing. Wanda Commercial developed Wanda Plazas, a core Wanda Group business. It had built a total of 235 of these malls covering 32 million square meters by the end of last year. A new real estate conglomerate will be set up in future to take over Wanda Commercial's asset heavy business, the group added.

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Keywords: MSCI , TENCENT , Suning , Sunac China , JD.com