RMB60 billion investment marks one of the largest private equity transactions in China in the past five years
(Dalian, 30 March 2024) PAG, together with CITIC Capital, funds managed by Ares Management (“Ares”), Platinum Peony B 2023 RSC Limited (a wholly-owned subsidiary of the Abu Dhabi Investment Authority or “ADIA”), and Mubadala Investment Company (“Mubadala”), today announced the signing of a joint investment of approximately RMB60 billion (USD8.3 billion) for a 60% stake in Newland Commercial Management.
Newland is an operational management platform which inherits the businesses of Zhuhai Wanda Commercial Management Group Co., Ltd. (“WCM”), currently managing 496 large-scale commercial malls across China.
The signing today follows the announcement on 12 December 2023 by PAG and Dalian Wanda Commercial Management Group Co. Ltd. for the framework of reinvestment in WCM.
The investment announced today marks one of the largest private equity transactions in China in the past five years, representing a strong vote of confidence by global institutional investors in Newland’s growth prospects.
David WONG, Partner and Co-Head of Private Equity at PAG, said: “This investment demonstrates global institutional investors’ recognition of Newland’s long-term development potential. We believe that Newland’s strong competitiveness and significant first-mover advantage will support it to achieve stable and sustainable operating performance, which in turn will bring solid returns to investors.”
Yichen ZHANG, Chairman and Chief Executive Officer of CITIC Capital, said: ” CITIC Capital holds a strong long-term belief in the tremendous potential of the commercial management market in China. As a frontrunner in the industry, Newland boasts significant competitive advantages and a promising future. We are confident that this investment will provide Newland with lasting stability and support, facilitating the company’s robust and rapid development, and driving further value creation.”
In August 2021, PAG, CITIC Capital, Ares and other existing investors made an investment in WCM. In the three years since then, WCM has consistently outperformed its financial targets and has distributed dividends to shareholders of RMB4.6 billion in 2021, RMB6.7 billion in 2022 and RMB8.8 billion (estimated) in 2023.
Newland has pledged to focus on building independent corporate governance, incentivizing the management team, and improving its operational efficiency. The investors are committed to support Newland’s long-term growth prospects by solidifying its market-leading position in the commercial mall operational management sector.
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About Newland Commercial Management
Newland Commercial Management, together with its subsidiary Zhuhai Wanda Commercial Management Group Co., Ltd., is the world’s largest commercial management company. Over the past 20 years has established trust partnerships with more than 25,000 brands and built a strong competitive advantage. The company currently manages 496 large-scale commercial malls in 230 cities across China with about 70 million square meters of area under management, serving more than 100,000 commercial customers. The company is committed to green and high-quality development with 254 shopping malls under management having obtained Green Mall certification.
About CITIC Capital
Founded in 2002, CITIC Capital Holdings Limited is an alternative investment management and advisory company. The firm manages over USD16 billion of capital across 100 funds and investment products through its multiple asset class platform covering private equity, real estate, structured investment & finance, and asset management. CITIC Capital has over 290 portfolio companies that span 11 sectors and employ over 500,000 people around the world. For more information, please visit www.citiccapital.com.
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CITIC Capital Holdings Limited
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cindytam@citiccapital.com
Irene GAO
Senior Associate, Corporate Relations
CITIC Capital Holdings Limited
Tel: +852 3710 6814
irenegao@citiccapital.com