ADIA and Mubadala join $8.3bn China shopping mall deal

Two Abu Dhabi state-backed companies are part of a group which has agreed to invest $8.3 billion to acquire a 60 percent stake in Chinese property major Dalian Wanda’s shopping mall subsidiary.

The investment was led by Hong Kong private equity firm PAG, along with Platinum Peony B 2023 RSC, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company, Citic Capital and New York-headquartered Ares Management.

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Dalian Wanda Commercial Management Group will retain 40 percent of Newland Commercial Management, the holding company of Zhuhai Wanda Commercial Management Group, PAG said in a statement.

“We like the competitive edge and first-mover advantage that Newland has built, and we think these advantages will allow it to generate stable and growing cash flow for investors,” said David Wong, partner and co-head of private equity at PAG.

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Newland manages 496 large-scale shopping malls across China.

The investment will facilitate corporate governance independent from its former parent, provide better incentives for its management, and support Newland’s continued operational improvement, the statement said.

Last December, PAG and Dalian Wanda announced signing an investment framework to restructure Zhuhai Wanda Commercial Management.