Wang Jianlin stated in Wanda Group's 2018 work summary that according to the investment agreement, Wanda Commercial will divest all real estate business within this year, not even a single square meter of real estate development, and become a complete commercial management and operation enterprise.He believes that after this is completed, the market will see a high-quality enterprise that is rare in China.
According to reports from Sina Finance, Wall Street News and other media, Wang Jianlin also emphasized the need to promote asset securitization of Wanda Plaza.He said: I understand that such a good property like Wanda Plaza, which has good cash flow and has room for asset appreciation, should be a scarce resource in the market.I hope that the Capital Center will work hard to implement asset securitization this year.
Why did Wanda transform from real estate?Why deny your mature and well-done business model?Why bother yourself?Wang Jianlin pointed out that because the real estate industry has two major flaws, one is that the real estate industry is a highly cyclical industry, with a difference of several years, and many companies die during the cyclical changes.Second, real estate cash flow is not long-term.Houses are not fast-moving goods, and even compared to durable consumer goods such as cars, the update speed is much slower.
He also pointed out that when the urbanization rate of a country reaches about 70%, the real estate market will shrink.It is possible for some companies to survive in the real estate industry for decades or hundreds of years, but after market sales shrink, the number of companies in the industry will decrease significantly.
Wang Jianlin finally said that Wanda’s 2018 work report will be released to the public as normal, and that after 2019, the work report will not be released to the public.
