Joint Announcement of Dalian Wanda Commercial Properties and Sunac China
10.07.2017
To give full scope to their respective business strengths, Dalian Wanda Commercial Properties Co., Ltd. and Sunac China Holdings Limited, based on friendly consultation, signed on July 10, 2017 an equity transfer agreement regarding 13 Wanda Cultural Tourism City projects including Xishuangbanna Wanda Cultural Tourism City, Nanchang Wanda Cultural Tourism City, Hefei Wanda Cultural Tourism City, Harbin Wanda Cultural Tourism City, Wuxi Wanda Cultural Tourism City, Qingdao Wanda Cultural Tourism City, Guangzhou Wanda Cultural Tourism City, Chengdu Wanda Cultural Tourism City, Chongqing Wanda Cultural Tourism City, Guilin Wanda Cultural Tourism City, Jinan Wanda Cultural Tourism City, Kunming Wanda Cultural Tourism City and Haikou Wanda Cultural Tourism City, and a hotel transfer agreement regarding 76 hotels including Wanda Realm Beijing and Wanda Reign Wuhan. The main contents are as follows:
I. Wanda transfers 91% of its equity interest in the abovementioned 13 Wanda Cultural Tourism City projects, representing 91% of its registered capital, or RMB 29.575 billion, to Sunac China, and Sunac China assumes all the existing loans of the projects.
II. Sunac Real Estate Group Co., Ltd. acquires the abovementioned 76 hotels for RMB 33.595 billion.
III. The parties agree to sign detailed agreements over the matters before July 31 and complete payment and asset and equity transfer as soon as possible.
IV. The parties agree that the Wanda Cultural Tourism City projects will remain “unchanged in four ways” after the equity transfer:
1. The brand will remain unchanged: The projects will continue to use the “Wanda Cultural Tourism City” brand;
2. Planning will remain unchanged: The projects will continue to be developed according to the plans and their contents approved by the government;
3. Project development will remain unchanged: Wanda will continue to be responsible for the projects’ design, construction and quality.
4. Operations management will remain unchanged: Wanda will continue to be responsible for the projects’ operations management.
V. After the transfer of the hotels, the hotels’ existing management contracts will continue in force until expiration.
VI. The parties agree to have comprehensive strategic cooperation in extensive areas including movie.