In July 2017, Wanda and Sunac signed a deal involving 13 Wanda Cities. The deal stipulated that after the purchase, Wanda Cities names would remain unchanged and the projects would still be designed, built and managed by Wanda Group. Wanda Group and Sunac discovered during implementation that this model creates a number of inconveniences. The companies have determined that consistency in project planning, construction, operation and management and investment is more beneficial for the development of the projects.
Following negotiations between the two parties, Sunac will fully purchase Wanda Culture Travel Innovation Group and design, construction and management companies of 13 cultural tourism projects for US$900 million. Wanda will use its resources to support the purchase of the Wanda City projects that have not yet opened and ensure smooth opening and operation.
In the future, Wanda will continue to invest in cultural tourism sector and retain core cultural tourism teams. In conjunction with the sale, Wanda will reorganize its Cultural Tourism Planning and Research Institute, the Cultural Tourism Construction Center and the Cultural Tourism Management Company.
In the future, Wanda will adhere to a guideline of developing both asset-heavy and asset-light businesses. Wanda will continue investing in a number of Cultural Tourism City projects that are being negotiated. Among those, asset-light Wanda City projects will include a number of third-party investors, including Sunac.