China’s richest man Wang Jianlin commits $1.7b to Australian real estate
PUBLISHED: 13 Aug 2014 00:05:00 | UPDATED: 13 Aug 2014 11:14:17PUBLISHED: 13 Aug 2014 PRINT EDITION: 13 Aug 2014
http://www.copyright link/rf/image/2009-2014/AFR/2014/08/12/Photos/115a74f2-224d-11e4-b7ba-c891b2577a15_wang-jianlin-gold-coast-resort--646x363.JPG
China’s richest man Wang Jianlin has already been on a global buying spree, purchasing London high-rises and a US movie chain. Photo: Bloomberg
Matthew Cranston
China’s richest man, Wang Jianlin, has committed $HK12.5 billion ($1.7 billion) to invest in Australian real estate including the construction of a $900 million beachfront resort on the Gold Coast.
Property experts say the deal could herald a new dawn of Chinese property investment in Australia.
Mr Wang, the chairman of the Hong Kong-listed Wanda Group, took over the top spot on the Forbes China Rich List for the first time last year after a rebound in property prices.
In a statement to the Hong Kong Stock Exchange Wanda Group said it would pay for the new resort, known as The Jewel, through internal resources and a mixture of debt and equity.
Mr Wang’s Wanda has already been on a global buying spree picking up London high rises as well as US movie chain AMC Entertainment and Sunseeker yachts.
The Jewel has state approval for up to three high-rise buildings containing a resort hotel, apartments, office and recording studio, restaurants and cafes. The site can accommodate a total building area of up to 147,000 square meters.
The decision by Wanda represents the financial power of the Chinese investors and their expectation of exponential growth in Chinese tourists over the next decade.
Chinese tourist spending rising rapidly
Tourism & Transport Forum chief executive Trent Zimmerman said the number of Chinese visitors to Queensland grew faster than the national average in 2013, rising by 16 per cent to more than 300,000.
“Importantly, spending by Chinese visitors to Queensland grew even faster, up about 28 per cent on the previous year,” he said.
“These are critical factors in the decisions we are seeing from Chinese investors.”
Minister for Trade and Investment Andrew Robb welcomed Wanda’s decision which follows on from the explosive investment by Chinese real estate companies in residential property in Australia over the last 12 months.
“The addition of a new luxury Chinese hotel brand to the Australian market will have benefits across Australia’s tourism industry,” he said.
Mr Robb said the Wanda Group had identified Australia as a priority market for future investment following participation in an investment round table during Australia Week in China.
Wanda’s decision to invest on the Gold Coast follows commitments from investors such as ASF Group, which is leading a consortium backed by Chinese investors to build a cruiseship terminal and resort.
Chinese property developer Greenland Holdings Group also teamed up with James Packer’s Crown Resorts last month in a bid to build a new casino and entertainment complex in Brisbane.
The Australian Financial Review
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