The welcome had, however, certain costs for the real estate group: the title was down 4% to 13 h 30 local time (5 pm GMT 30) at 46.05 Hong Kong dollars in a market slightly up 0.12%.
Second largest owner of shopping malls, a subsidiary of conglomerate Dalian Wanda Group, headed by billionaire Wang Jianlin, placed 13% of its capital on the market, raising $3.7 billion.
This is one of the largest placement carried out in recent years on the place of Hong Kong. It also surpasses the previous world record set by a real estate group entering the stock market: it was the Singapore Global Logistic Properties in 2010, which placed 2.9 billion of securities.
However, Wanda Commercial – which also manages hotels – had to reduce by one third its objectives. Investors are cautious indeed shown both in view of the group’s debt ratio (it stood at 88% end of June) and the slowdown in the property market in China.
The group’s turnover fell by 27% in the first half of 2014, 23 billion yuan ($302 million), profits tumbling, meanwhile, 47% over the same period.
Decline in real estate
Wanda Commercial, which operates 175 locations in China, including 71 Wanda Plaza malls, focusing on medium-sized cities and the wave of urbanization of the country, is facing oversupply for commercial surfaces.
Furthermore, with the strong growth of Internet purchases, attendance at shopping centers flexes. Wanda is also associated recently with two Internet players, Tencent and Baidu, Alibaba to better face.
This decline in real estate led Dalian Wanda Group and his boss Wang Jianlin strengthen the anchor in the cinema. An activity in which the group was first developed through the cinema, seen as complementary malls.
The group acquired in 2012 the American chain AMC theaters, becoming the world’s leading theaters. And launched the construction, Qingdao (East China), a complex of film studios, a theme park, a museum and more theaters.
Today, Wang Jianlin aims at acquiring the majority of Lions Gate Studios, whose production list includes movies like “Hunger Games.”
China Wanda dream is to afford studios Lions Gate, producer of “Hunger Games”
Interest in the film’s second richest man in China, as ranked by the magazine wealthy and their admirers in China Hurun, is confirmed again. Having acquired the North American chain AMC theaters two years ago, the owner of shopping malls and hotels Wanda Wang Jianlin, is engaged in conversation with Lions Gate Studios.
Wang explained that “exchanges are only at the beginning and may not lead to an agreement” when interviewed by Bloomberg. The current president of the production company, Mark Rachesky, holder of 37% of the shares, will become a minority shareholder.
Lions Gate, which produced the series Mad Men as well as “Hunger Games” has not confirmed. Wanda side, it is explained that he had “never made a secret of interest to expand its involvement in the entertainment industry.” The conglomerate said reviewing a number of investment opportunities for a while.
On the website of Wanda, we read that Mr Rachesky and Mr Wang met in October, in particular. Lions Gate Group, for its part, has already taken the first step into the Chinese market by agreeing in July with the champion of e-commerce Alibaba on the pay broadcast in ‘streaming’ of his films on the Internet, including episodes of “Twilight”.
Meanwhile, Wanda was approved Monday managers of the Stock Exchange of Hong Kong to achieve its market introduction. Potentially the largest in the former British colony for four years, it could allow the branch of the empire Wang Jianlin focused on real estate to raise nearly five billion euros. His theatrical management subsidiary should also be floated shortly to raise it to 260 million euros.
Wang Jianlin has historically launched in movie theaters because they were complementary, its shopping centers. But as Chinese real estate is slowing, his interest in the cinema is growing. His group of developers, Wanda Commercial, saw its sales fall by 27% in the first half of 2014 23 billion yuan ($302 million), profits tumbled 47% over this period. This is also why it has doubled in 2014 by the owner of Alibaba, Jack Ma, the rank of the richest person in China.
At 60, Mr Wang aims to drive the emergence of a new Hollywood for the Chinese market. In September 2013, he had spent tens of millions of dollars to bring Leonardo Di Caprio, Nicole Kidman, John Travolta, or Jet Li and Zhang Ziyi in the coastal city of Qingdao (northeast) where he launched the construction a complex comprising huge studios of shooting, a theme park, a museum and of course a movie theater. A project that required an investment of 4 to 6.5 billion euros.