Since 2017, Wanda Group, which has sold cultural tourism real estate projects and hotels and switched to an asset-light operation model, originally expected to stand out in the property market adjustment and even become a "white knight". However, Wanda Group's real estate business is still struggling to withstand the current market pressure, which has led to a series of changes.
The term "cutting meat" describes the way that real estate developers divest some of their assets to alleviate liquidity crises or reduce liabilities. In the context of the current property market adjustment, many large real estate developers have adopted a meat-cutting strategy to cope with market pressure.
Wang Jianlin, the founder of Wanda Group, was no exception, and he raised funds by giving a controlling stake in Wanda Films** to Shanghai Ruyi in order to reduce the burden on Wanda Group. The equity transfer makes Shanghai Ruyi a wholly-owned subsidiary of Wanda Investment, and Wang Jianlin is no longer the actual controller of Wanda Films.
In addition, according to **, Wanda also plans to **partially located.
Wanda Plaza in first- and second-tier cities. This is not the first time Wanda has cashed out its core assets, as early as October this year, Shanghai Zhoupu Wanda Plaza was acquired by Everybody Insurance. Today's meat cutting operation can be said to be a life-and-death battle for Wanda Group.
According to the financial report of Wanda Commercial Management, Wanda is currently facing the pressure of many debts. There are 9 domestic bonds, with a total amount of 6.9 billion yuan, of which 18 bonds mature within one year800 million yuan;There are 3 offshore US dollar bonds, with a total amount of US$1.3 billion. In addition, Wanda Commercial Management's current liabilities exceeded 100 billion yuan, of which short-term liabilities were 66.2 billion yuan. In addition, Wanda signed with a number of strategic investors"VAM Agreements"It has put pressure on Wanda, and if Wanda Commercial Management is unable to complete its IPO in 2023, it will need to repurchase**, paying up to 30 billion yuan in cash repurchase and interest.
Faced with so many debt crises, Wanda Group is in dire need of cash to repay its debts. However, Wang Jianlin did not have much cash on hand to repay his debts, and the monetary funds in his account were less than 15 billion yuan. Therefore, this meat cutting operation can be said to be Wang Jianlin's last choice.
In addition to Wanda Wang Jianlin, another troubled real estate tycoon is Xu Jiayin of Evergrande Group. Recently, Xu Jiayin was subject to criminal coercive measures on suspicion of serious violations and crimes. This has caused Evergrande Group to face great turmoil and pressure. Evergrande Group is one of China's leading real estate companies, but now it is facing a serious capital chain break and debt crisis. This is also one of the challenges facing the real estate industry as a whole.
Sunac founder Sun Hongbin is also one of the real estate tycoons at risk. Sunac Group was once among the top five in China's real estate industry, but recently faced offshore debt restructuring. Fortunately, Sunac successfully completed the debt restructuring, and Sun Hongbin can breathe a sigh of relief for the time being. However, the pressure of "guaranteed delivery" in China still exists, which is a challenge that real estate developers need to face.
Another troubled real estate tycoon is Yang Guoqiang of Country Garden. Country Garden was once known as the "No. 1 real estate enterprise in the universe", but it is currently going through difficult times. Yang Guoqiang once handed over the management of the company to his daughter and took a back seat, but now he has to continue to contribute behind the scenes. After retiring, Yang Guoqiang encountered more troubles than at work.
Among the many troubled real estate tycoons, Pan Shiyi is a special case. He is the founder of SOHO China, and although SOHO China is not as large as Wanda, Country Garden and Evergrande, Pan Shiyi has successfully invested capital in overseas markets with his unique wisdom and strategy. He started selling his domestic assets as early as 9 years ago and moving his money overseas. Pan Shiyi foresaw the risks in China's real estate market and took timely action to avoid getting into trouble. His approach may have provided a way for other real estate tycoons to cope.
In general, China's real estate market is facing many challenges, including the continuous increase in regulatory policies, the increasing pressure on the capital chain, and the decline in market demand. Real estate tycoons need to face these challenges and find suitable strategies to deal with them. For some of the troubled real estate tycoons, cutting or transforming may be the only option at the moment. At the same time, some real estate tycoons who have the foresight and act in a timely manner may emerge from the current predicament and look for new opportunities.