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Wanda, SUNAC and R&F Sign Strategic Cooperation Agreement

19.07.2017
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\Signing ceremony
\Wanda Group Chairman Wang Jianlin meets with Sun Hongbin, Chairman of Sunac China Holdings, and Li Sze Lim, Chairman of R&F Properties Co., Ltd before the signing ceremony.
\Sun Hongbin, Chairman of Sunac China Holdings, addresses the signing ceremony.
\Li Sze Lim, Chairman of R&F Properties Co., Ltd, addresses the signing ceremony.
\Wanda Group Chairman Wang Jianlin addresses the signing ceremony.
Joint Announcement of Wanda Commercial Properties, SUNAC China Holdings and R&F Properties

Speech by Mr. Wang Jianlin, Chairman of Wanda Group at the Signing Ceremony

On July 19th, Wanda Commercial Properties Co., Ltd., SUNAC China Holdings Ltd and R&F Properties signed the Strategic Cooperation Agreement in Beijing.

According to the agreement, Wanda Commercial Properties will transfer 77 hotels, including Wanda Realm Beijing, to R&F for RMB 19.906 billion, as well as 91% of the equity of 13 cultural tourism projects in such cities as Xishuangbanna and Nanchang to SUNAC for RMB43.844 billion. The total value of the transaction will be RMB 63.75 billion.

Compared with the agreement signed between Wanda Commercial Properties and SUNAC on July 10th, R&F is added as a trading party, but the object and total amount of the transaction are basically the same. The contract signing ceremony was attended by Wang Jianlin, Chairman of Wanda Group, Sun Hongbin, Chairman of SUNAC China Holdings, Li Sze Lim,, Chairman of R&F Properties, and Zhang Li, Co-Chairman and CEO of R&F.

According to the agreement, R&F acquires all equities of the 77 hotels of Wanda Commercial Properties for RMB19.906 billion, and the former hotel management contracts executed shall still be performed until the expiration thereof. SUNAC acquires 91% of the equity of 13 cultural tourism projects in such cities as Xishuangbanna and Nanchang for RMB43.844 billion, and bears all existing loans of about RMB45.4 billion after the closing of the projects.

Wanda Commercial Properties and SUNAC agree to maintain the cultural tourism projects unchanged in four aspects after closing: 1. Unchanged brand: the brand of “Wanda Cultural Tourism City” shall still be applied for the self-owned properties concerned; 2. Unchanged planning: the projects shall still be developed and constructed in accordance with the plans and content approved by the government; 3. Unchanged project construction: the design, construction and quality of the self-owned properties shall still be managed and controlled by Wanda; 4. Unchanged operation and management: the operation and management of projects shall still be undertaken by Wanda.

SUNAC and R&F are considering entrusting Wanda Commercial Properties and Wanda Film to manage all commercial centers and cinemas invested and developed in the future. All parties agree to establish comprehensive strategic cooperation in multiple fields, including cultural tourism projects and film.

Wang Jianlin, Chairman of Wanda Group, noted that this cooperation is beneficial for all three parties no matter whether considered from the aspect of enterprise strategy or business logic. This is exactly the case for Wanda, as Wanda can significantly decrease the liabilities and recover tremendous cash flow via this...

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