Why did Wang Jianlin sell the Spanish building at a loss of 200 million?

On June 2, 20 14, Wanda spent about 2.2 billion when it bought the Spanish building. According to the current exchange rate, it is sold at 272 million euros, which translates into about 2.075 billion yuan, which means that Wang Jianlin lost about 200 million yuan. Wang Jianlin also said that Spain has bigger tourism investment projects and will not invest now.

On June 2nd, Wanda Hotel Development (00 169. HK) announced that the company has sold all the shares of Spanish Building to Baraka Global Invest. At the same time, the company has cancelled the share mortgage previously arranged for the loan to be sold to a domestic financial institution, and promised to re-mortgage the sold shares if the sale is not completed before June 2 1. Previously, Wanda Hotel Development had announced that the price of selling the Spanish building was 272 million euros, slightly higher than the price of 265 million euros when Wanda bought it.

However, the exchange rate has changed in the past two years. If calculated in RMB, Wanda spent about 2.2 billion yuan when it bought the Spanish building in 20 14. At the current exchange rate, the Spanish Mansion sold for 272 million euros, which translates into about 2.075 billion yuan. If this part of the assets is estimated in RMB, it means that Wang Jianlin has lost about 200 million.

Wanda 2065438+In February, 2004, it acquired the Spanish Building, a landmark building in Madrid, for 265 million euros. Project * * * has 25 floors, with a height of117m and a total area of 4,655 square meters. It is planned to redevelop into a luxury hotel with 200 rooms, high-grade retail space and about 300 apartments, with an estimated construction area of about 83,228 square meters.

However, the project was blocked by the Madrid government. Since then, Wanda has launched a "tug-of-war" with the Madrid government for more than two years. Wanda said that for safety reasons, it is proposed to completely dismantle the building and rebuild it brick by brick. But the proposal was rejected by the new mayor of Madrid. Since then, Wanda has held many discussions with the Madrid government. The Mayor of Madrid, Carmena, and the Chairman of the Madrid Urban Sustainable Development Department all stressed that Wanda will not leave Spain.

Although the Madrid municipal government made concessions to Wanda, it agreed to accept Wanda's previous request to demolish the Spanish building and rebuild it with the original materials, shapes and sizes. But in the end, Wanda lost interest in the Madrid municipal government and rejected the complicated plan proposed by the local government to repair the Spanish building.

20 16 On July 22nd, Wanda Hotel Development announced that Wanda Europe Real Estate Investment Co., Ltd. signed a non-legally binding memorandum of understanding with Baraka, Spain, which may involve the sale of Spanish buildings to Baraka. According to the memorandum of understanding, Baraka has paid 6,543,800 euros to Wanda as a deposit. At that time, it was announced that because the possible sale was still under discussion and negotiation, it was necessary to wait for the final agreement between the two parties.

This time, Wang Jianlin bid farewell to the Spanish building completely. Wang Jianlin once said in the CCTV financial channel "Dialogue" interview program that there were more tourism investment projects in Spain, but now he has decided not to invest.