China’s Wanda withdraws plan to buy London property

Beijing wants firms to halt debt-fuelled acquisitions abroad amid economic fears

Chinese conglomerate Dalian Wanda said yesterday it was abandoning plans to buy a £470 million ($606 million; Dh2.22 billion) plot of land in London, as Beijing presses companies to halt overseas acquisitions.

A spokesman for Wanda, controlled by one of China’s richest men Wang Jianlin, confirmed its affiliate, International Real Estate Centre, would no longer purchase the four-hectare (10-acre) Nine Elms Square site but did not give more details.

Britain’s St Modwen Properties said in June that it had reached a deal with its French partner, Vinci, and Wanda for the sale. St Modwen Properties issued a statement on Monday saying its joint venture with Vinci had “successfully completed” the sale, but the communique did not name the buyer.

New rules unveiled

Wanda, a massive group whose holdings range from commercial property to entertainment, sports and theme parks, is among a slew of companies under pressure from Beijing to put the brakes on debt-fuelled overseas investments.

The government laid out new rules on Friday to restrict foreign investments in sports clubs, real estate and entertainment.

Beijing had encouraged such foreign ventures in previous years but the government now worries about growing debt loads that could endanger the economy.