What is Wang Jianlin’s purpose in selling the Chicago project for US$270 million?

As the chairman of Wanda Group, Wang Jianlin has a very keen sense of smell in the business world. Every time Wang Jianlin makes a big move to sell some projects, it is mostly interpreted as a need to pay off debts. In fact, everyone knows that Wanda has debts, but it is selective in choosing which projects to sell. It has recently been reported that Wang Jianlin has decided to sell a real estate project in Chicago, USA. This time, 90% of the equity in the Chicago real estate project will be sold directly. The external sale price is US$270 million. Although the announcement made it clear that the sale was to reduce debt, in fact, the sale had another purpose.

The purpose of Wang Jianlin’s 270 million sale of the Chicago project in the United States is as follows:

1. The current environment in the United States is no longer suitable for investment

As we all know, since entering 2020, , the epidemic situation in the United States is rising steadily, and now the number of confirmed cases of COVID-19 has exceeded the four million mark. It is conceivable that the hotel and other industries in the United States will encounter a cold winter in a few years. In this general environment, one can imagine Wanda’s situation in the United States. It would be better to sell it than to close down, which can also reduce debt and reduce investment risks.

2. Chinese-funded enterprises are not the only ones withdrawing foreign investment in the United States

Due to the COVID-19 epidemic in the United States, foreign investments in the United States have withdrawn from the United States in order to protect themselves. It can be said that Wang Jianlin sold Chicago To a certain extent, the project is also for self-protection. After all, the main purpose of investing is to make money. If you can't make money, selling is the best solution.

3. The number of demonstrations in the United States is getting higher and higher

As we all know, the number of demonstrations caused by racial conflicts in the United States has been increasing. Many innocent shops and even large hotels were smashed. It is conceivable that these large hotels are already struggling due to the epidemic, and if they are smashed again, you can imagine how bad the situation will be.

The purpose of Wang Jianlin’s US$270 million sale of the Chicago project is the above three. As a businessman and a patriotic entrepreneur, it is very wise for Wanda to make the right decision after assessing the risks.