Nice to have an article of mine cited in the Chicago Tribune (emphasis added):
A Chicago developer said construction of the 98-story Vista Tower, which will be the third-tallest building in the city once completed, is unaffected despite major changes to the Chinese company that is backing the condominium and hotel project.
Magellan Development Group’s $1 billion East Wacker Drive skyscraper is one of several commercial real estate properties caught up in a Chinese government crackdown on high-leverage investments overseas.
Billionaire Wang Jianlin’s Dalian Wanda Group, Magellan’s equity investor in the Chicago tower, is in the midst of a major company restructuring as the result of heavy pressure from the Chinese government over its investments in the U.S. and other countries.
On Wednesday, Wanda Hotel Development Co. — which is publicly traded in Hong Kong — disclosed that it is selling stakes in real estate projects including the Chicago tower to a privately held company controlled by Wang’s family. That company is called Dalian Wanda Commercial Properties Co.
While the sale simply amounts to shifting ownership stakes from one Wanda Group affiliate to another, it could signal more changes are ahead. Mingtiandi, a newsletter and website that covers the Asian commercial real estate market, said it could be a step toward Wanda eventually selling ownership stakes of properties in cities including Chicago, London and Sydney.
But Magellan President David Carlins said he’s had no discussions about a potential sale from Wanda Group.
“We have not heard anything about (a sale), and there would have to be conversations about that, because it would require our consent,” Carlins said.
Wanda Group representatives did not immediately respond to a request for comment.
Here’s the Mingtiandi article referred to above:
Dalian Wanda Group is selling stakes in nearly $4.5 billion in real estate projects across the UK, US, China and Australia to a privately held company controlled by its chairman Wang Jianlin, according to an announcement to the Hong Kong stock exchange on Thursday.
The asset sale is part of what the company says is a $1 billion restructuring after the property and entertainment conglomerate became a focal point for a Chinese government crackdown on cross-border deals and excessive leverage over the past few months.
Analysts believe that the restructuring is likely to be an intermediate step in Wanda ultimately selling off its interests in property projects in London, Chicago, Sydney and other locations, that made it into one of China’s best known players during the country’s 2012 to 2016 “go global” spree.