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Wanda obtains £90M loan from buyer of London project

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Wanda obtains £90M loan from buyer of London project

Wanda Hotel Development Co. Ltd. was unable to secure a waiver for a loan it owes to Ping An Bank Co. Ltd., leading it and Guangzhou R&F Properties Co. Ltd. to enter into a supplemental agreement for a £90.0 million loan, which will allow for the completion of a property deal between the two developers.

According to the June 12 agreement, Guangzhou R&F will provide the loan to Wanda One (UK) Ltd., which will, upon receipt, repay the Ping An Bank loan within seven days. Wanda Hotel will then obtain release of the guarantee provided by its parent, Dalian Wanda Commercial Properties Co. Ltd., from the loan.

Due to the supplemental agreement, the consideration for Wanda Hotel's sale of the One Nine Elms project in London to Guangzhou R&F was adjusted. While the £35.6 million shale-shares consideration is unchanged, the debt that comes with the agreement was revised to about £161.3 million from £159.5 million.

Depending on which comes first — one day after the guarantee release or 11 days after the Ping An Bank loan is repaid — the Chinese developers' transaction in the U.K. will be completed.

Certain Wanda project companies and Ping An Bank entered into the loan agreement June 6, 2016, £150.0 million of which has been withdrawn.