Wang Jianlin, a former builder of a real estate empire and former richest man in China, appears to be facing the toughest challenge of his business career. According to reports, he is considering the core asset of the Wanda Group - located.
Wanda Plaza in first- and second-tier cities. The decision is reminiscent of a similar approach by Xu Jiayin, another real estate tycoon, who often has no choice but to make a strategic adjustment when the market is sluggish and companies are experiencing a liquidity crisis.
For Wang Jianlin, at this time, ** property means that it is necessary to find a buyer during the trough of the market, and the buyer's bargaining chips are obviously larger. Although Wanda Plaza has its unique value as a complex integrating commerce and entertainment, under the dual pressure of the overall economic downturn and the regulation of the real estate market, even the attractiveness of landmark properties will not be affected. In this context, what can be obtained by **assets** may not be ideal, and it is even more difficult to find investors who are willing to take over.
In the real estate industry, where cash flow is king, maintaining a healthy cash flow is crucial. Excessive leverage, when the market is volatile, is likely to be the last straw that crushes the company. Wang Jianlin's choice of core assets at this time may be to realize the importance of ensuring the survival of enterprises under the pressure of high debt.
At the same time, Wanda Commercial Management's listing plan in Hong Kong, another important business of Wanda Group, is also quite bumpy. The group said that there is no clear IPO timetable, which undoubtedly sends a signal to the outside world: even the former richest man in China must face the severe test of the market and replan and adjust the future of the company.
Both Wang Jianlin and the Wanda Group he leads seem to have reached a critical crossroads now...
However, I recently heard that Lao Wang plans to pass on the throne to Xiao Wang....Will this bring a turnaround for Wanda?
Wang Jianlin