May 16, 2019 (China Knowledge) - Property conglomerate Wanda Group has revealed an RMB 80 billion investment into the northeastern city of Shenyang to build a world class cultural tourism project, an international hospital, school and five Wanda Plazas.
The project which marks one of the largest investments into the city ever will commence construction in the third quarter this year.
Wanda’s investment comes after the company underwent a massive offloading campaign, dumping USD 25 billion worth of assets after being placed under scrutiny by Chinese regulators for highly leveraged acquisitions across the world.
The company is now refocusing on its home market in China, investing RMB 20 billion in Chaozhou, Guangdong province and RMB 45 billion in the province of Gansu. In addition, the company had also invested RMB 25 billion into Shenyang prior to this latest investment.
The ambitious investment plan in Shenyang has drawn questions towards the company towards how these projects will be carried out given that majority of them will require upfront investment.
However, according to analysts, the actual expenditure by Wanda will likely be much smaller as local governments will likely be involved and that these projects generally require more time to complete.
Wanda typically aims to work with local governments to solve local issues such as employment and economic growth, receiving cheap land in return which it then uses to build residential units and reaping profits from their sale eventually.
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