China's Wanda confirms €272m sale of landmark Madrid building

Hu Yijing China Plus Published: 2017-06-02 18:41:44
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Chinese real estate giant Dalian Wanda's hotel unit has confirmed that it's sold the iconic Edificio Espana building in Madrid to Spanish property developer Baraka Global Invest.

The sale brings to an end the group's three-year-long battle with local authorities.

The 25-storey Edificio Espana building in Madrid, capital of Spain. [File Photo: baidu.com]

The 25-storey Edificio Espana building in Madrid, capital of Spain. [File Photo: baidu.com]

The 25-storey Edificio Espana building, with a floor space of 4,655 square meters, was acquired by Wanda in February, 2014. 

The takeover marked the Chinese developer's first entry into the Spanish real estate market.

At the time, the group proposed tearing down the structure for safety reasons, and turning the historic building into a luxury hotel & shopping complex, but the plan was met with opposition from the city's mayor. 

After feuding with city authorities for two years, Wanda Hotel Development published a statement on July 22, 2016, saying it had signed a preliminary agreement to sell the landmark building to Spanish investment group Baraka.

In a previous statement, Wanda Hotel Development announced that the deal was valued at €272 million, slightly higher than the price the conglomerate paid in 2014.

It's reported that due to fluctuations in the exchange rate, Wanda has suffered a loss of about 200 million yuan (about $29.4 million).

The sale was officially confirmed on June 2, 2017.

Wang Jianlin, chairman of Chinese real estate giant Dalian Wanda Group. [File Photo: VCG]

Wang Jianlin, chairman of Chinese real estate giant Dalian Wanda Group. [File Photo: VCG]

In an interview with China Central Television (CCTV) in May, 2016, Wanda's Chairman, Wang Jianlin, said if negotiations with local Spanish officials failed then they "would sell the building and never invest again."

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