Pacific Alliance China Land Limited has realised its entire interest in Project Auspice. The investee (Dalian Wanda Commercial Properties Co., Ltd., or “Wanda”), is one of China’s largest property developers focusing on integrated mixed-use development and operation management of commercial properties throughout the PRC.
In 2009, PACL invested RMB 153 million (approximately equal to USD 22.4 million at the time) to purchase an indirect interest in shares of Wanda held through a PRC joint venture company (the “PRC JV”). Today, PACL realized its entire interest in the investment through the PRC JV’s sale of all Wanda shares indirectly owned by PACL to a third party for corresponding gross cash proceeds of RMB 816.7 million (approximately equal to USD 118.7 million), representing a net IRR of 15.2% and a net cash multiple of 3.83x on PACL’s initial investment.
The USD proceeds of the realisation will be distributed to shareholders through a future mandatory share repurchase, or another method to be determined by the Board, as soon as the necessary PRC tax clearance is received and the PRC regulatory repatriation process is completed, which is not expected to be until sometime in late 2018.
PACL : Pacific AllianceChina Land sells Project Auspice