Wanda plans RMB120 billion investment in Henan for 16 projects
11.09.2015
Representatives from Henan and Wanda sign the agreement.
Henan Governor Xie Fuzhan holds talks with Wanda Group Chairman Wang Jianlin.
On September 11 Wanda Group inked a strategic cooperation agreement with Henan provincial government in Zhengzhou. Under the agreement, Wanda Group will spend RMB120 billion in the next five years to build at least 16 Wanda Plaza and cultural tourism projects.
Henan Governor Xie Fuzhan held talks with Wanda Group Chairman Wang Jianlin before the agreement was signed.
Since it began investments in Henan in 2010, Wanda Group has built 7 Wanda Plaza properties in cities like Zhengzhou, Luoyang and Anyang. According to the latest agreement, Wanda will continue investments in Zhengzhou and Luoyang, and will bring Wanda Plaza to Xinxiang, Nanyang, Jiaozuo and Xuchang and other prefecture-level cities in the province, most of which are third- or fourth-tier cities.
The introduction of Wanda Plaza into these cities will expedite their commercial development, spur consumer spending, increase local governments’ tax revenue and add jobs in the service industry. The planned investments will accelerate the push for transition and upgrade of the economic structure in these cities and benefit the governments, enterprises and local citizens.
In the beginning of 2015 Wanda Group launched the fourth transition in its corporate history, from an enterprise with heavy reliance on real estate development to one seeking a growing presence in the modern service industry. A significant element of the transition is implementing its asset-light strategy to accelerate development of Wanda Plaza to bring the commercial property brand to all cities around the country, including third- and four-tier cities. Since it began implementing the asset-light strategy, Wanda Group has signed strategic cooperation agreements with governments in Guizhou, Guangxi, Sichuan, Liaoning and Chongqing, proposing to build some 100 projects with a total planned investment of RMB680 billion (including the RMB120 billion investment in Henan). Since the asset-light strategy has been making progress at a faster pace than initially expected, Wanda Group has determined to achieve its transition goals by 2018, two years ahead of its original plan to accomplish the missions by 2020.