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ADIA, Mubadala, and Ares Partners in $8.3 Billion PAG Acquisition of Wanda Malls

PAG, alongside CITIC Capital, Ares Management, Abu Dhabi Investment Authority (ADIA), and Mubadala Investment Company, confirmed their joint acquisition of Dalian Wanda Group’s primary shopping mall management business on Saturday.

The consortium signed an agreement to invest $8.3 billion, acquiring a 60 percent stake in Newland Commercial Management, a newly formed holding company of Zhuhai Wanda Commercial Management Group. Dalian Wanda Commercial Management retains the remaining 40 percent.

This investment marks a significant move to establish independent corporate governance for the mall management business, offering enhanced incentives for its management team and supporting operational enhancements, as stated in the joint announcement.

Strategic Move

The takeover by the PAG consortium comes after Dalian Wanda Group’s unsuccessful attempt to list its shopping center management business on the Hong Kong stock exchange. Despite the setback, Dalian Wanda Commercial Management ranked as China’s largest commercial developer in 2023, generating substantial operating income primarily from its mall portfolio.

David Wong, Partner and Co-Head of Private Equity at PAG, expressed confidence in Newland’s growth potential and its ability to generate stable cash flow. The consortium, which provided pre-IPO financing to Zhuhai Wanda three years ago, noted impressive financial performance, with net profits growing annually.

Investment Outlook

Yichen Zhang, Chairman and CEO of CITIC Capital, highlighted Newland’s competitive advantages and growth prospects, emphasizing the investment’s potential to drive lasting stability and value creation.

Newland Commercial Management now boasts a portfolio spanning 230 Chinese cities, encompassing over 70 million square meters of space and hosting more than 100,000 tenants.

PAG’s successful takeover underscores its expertise in mainland Chinese acquisitions, building on its track record of strategic investments in the region.

Correction: An earlier version of this story incorrectly stated that Zhuhai Wanda Commercial Management owned mall assets. Mingtiandi apologizes for any confusion caused.

Greg Swanson
Greg Swanson
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