Sunac China Holdings Ltd., the developer that has been on an aggressive acquisition spree, agreed to buy hotels and projects from Dalian Wanda Group Co. for 63.2 billion yuan ($9.3 billion), in one of China’s largest property transactions.
Sunac will buy 76 hotels from Wanda, and will purchase a 91 percent stake of 13 cultural and tourism projects, according to a statement posted on Wanda’s website. Sunac halted trading of its shares in Hong Kong on Monday pending an announcement of a “very substantial” acquisition, it said in a statement. The developer had closed 6.9 percent lower on Friday.
Billionaire Sun Hongbin’s Sunac has expanded rapidly, from four cities in 2011 to 44 in 2016, with the string of deals continuing this year. Investors are also monitoring the firm’s association with the struggling technology conglomerate LeEco after Sunac invested in the cash-strapped group. Sunac’s stock has soared almost 130 percent this year.
Sunac’s 14 acquisitions since the start of last year, not including the latest one, included a deal with technology company Legend Holdings Corp. that spanned 42 property projects across 16 cities, including Beijing, Tianjin, Chongqing and Hangzhou, according to Bloomberg data.
Wanda is among conglomerates including Fosun International Ltd., HNA Group Co. and Anbang Insurance Group Co. whose loans are under government scrutiny after China’s banking regulator asked some lenders to provide information on overseas loans to the companies, people familiar with the matter said in June.
©2017 Bloomberg L.P.