China's wealthiest man, Wang Jianlin, continues to spread his wealth into new markets, this time by acquiring a landmark building in Madrid for €260 million ($358.6 million), according to a leading Spanish politician.
Wang, who sits atop the Forbes China Rich List with a personal fortune estimated at $15.1 billion, acquired the Edificio Espana from Grupo Santander at a discount of 33 percent from the price that the Spanish banking giant had paid for the 25-story building in 2006.
Bailing Out Madrid's Downtown
The failed redevelopment of the downtown Madrid skyscraper had become an emblem of Spain's property crisis, and local officials expressed hope that the investment by Wang's privately-held real estate firm Dalian Wanda would herald a rebirth for Madrid's downtown.
President of the Community of Madrid Ignacio Gonzalez who confirmed the transaction to local media last week, said that Wanda’s plan to redevelop the Edificio is an important part of a recovery plan for the Spain Square area of Madrid, where the building is located. The parties to the transaction have yet to comment publicly on the deal.
The acquisition of the historic structure, which was Europe’s tallest when it was completed in 1953, is the latest overseas deal for Wang, who was Forbes China's Businessman of the Year for 2013 and has been among the most aggressive of China's international investors.
Wang's Dalian Wanda real estate company is one of the largest hotel developers in China, is said to plan to convert the 117-metre tall building into a luxury hotel and shopping centre.
Most recently, the Edificio Espana had housed apartments and offices, although it was originally constructed as a hotel. The Edificio is considered a leading example of Spanish architecture in the post-war period, but it has sat empty since the previous owner’s redevelopment project ran short of funds in 2007.
Wanda’s Latest Overseas Deal
Prior to jumping into the Spanish market, Dalian Wanda had already taken on billion dollar hotel development projects in London and New York, as well as property projects in India.
In 2012, Wanda led one of the first major U.S. acquisitions by a Chinese firm, when it invested $800 million to purchase American theatre chain AMC. Established in 1988, Dalian Wanda now owns 26 Wanda Plaza shopping centres across China, 49 five-star hotels, and 730 movie theaters.
In China Wang is planning a chain of entertainment parks that he promises will outdo Disney's upcoming Shanghai Disneyland on the local market.
Besides his property projects, Wang has shown a taste for splashier investments in boat makers and even modern art. Wanda bought the U.K.’s Sunseeker Yachts last year for $500 million and picked up a Picasso at auction in New York for $28.2 million.
