Wanda: Slowing Down Overseas Acquisitions

With the rise of overseas property boom, Wanda Group has accelerated its overseas expansion in recent years. Wanda hotel has invested five star Wanda Wenhua hotel in the core areas of London, Madrid, Chicago, Losangeles, Australia, Gold Coast and Sydney, which cost tens of billions of dollars.

Vice president and chief financial officer of Wanda Commercial parent company Wanda Group Chao Hui Liu Wanda Commercial has six overseas hotel projects, but the pace of acquisitions will slow down in the next few years. It plans to add one to two overseas projects every year.

He disclosed that in order to avoid overseas market In terms of policy and implementation risks, the future overseas business will expand with prudent strategy, focusing on the mature markets of some developed countries in Europe and America, especially the gateway cities and tourist destinations, without considering the regions with greater market risks such as India and Russia, so as to enhance the overseas brand influence of Wanda liquor stores.

At the same time, he said he chose overseas hotel projects. Return on investment The standard is around 15%-20%, and reveals that the company intends to enter the Hongkong market. However, due to the fierce competition in Hongkong market and the strong strength and maturity of local developers, we will pay close attention to the market in the future and wait for the opportunity to enter.

Ding Benxi said that the group has already owned hotel projects in many European and international gateway cities or tourist destinations in Europe and America, but stressed that overseas is not the main market for Wanda, and it will selectively look for investment opportunities in the future. The company will not involve large and long-term investment returns in overseas projects. For example, some of its own sales, and strive to be related to investment related unchanged.

In addition, he revealed that as Wanda's first overseas project in London Wanda hotel project, the first phase of the 3 billion yuan project has been sold out, and received a net cash inflow of 80 million pounds. In 2013, Wanda spent about 700 million pounds on the project, close to the South Bank of Thames River in London, and the total development area of the project was 105 thousand square meters.

For overseas project expansion, Wang Jianlin has listed three principles: first, to invest and acquire in developed and mature market countries; secondly, to take M & A as the main form, and to invest as a supplement; in addition, all mergers and acquisitions must be related to Wanda Group's business and focus on three industries: culture, tourism and retailing.

At the same time, Liu Zhaohui pointed out that since the end of last year, Wanda business has been "not hot and cold" since its listing at the end of last year, mainly because investors have not yet fully understood the company's business. "But we believe that the company's expected performance targets are all over fulfilled, and the promise of the initial Prospectus has been achieved, and the company's business model has strong advantages to ensure the certainty of growth this year, and the share price will have a better performance."