Quick Take: Wanda, Sunac, R&F Shares Soar on Restructured Asset Sale

Shares of real estate firms Wanda Hotel Development, R&F Properties and Sunac China rallied on Thursday, after the trio announced the restructuring of a previously announced asset sale that will distribute debt more evenly.

Wanda Hotel’s parent Wanda Group said earlier this month it would sell its 13 theme parks and 76 hotels to Sunac for 63.2 billion yuan ($9.4 billion), raising concerns that Sunac was taking on too much debt. But under the restructured deal announced late Wednesday, R&F stepped in to buy the hotels, while Sunac said it would only buy Wanda’s theme parks.

Investors cheered the new deal that would distribute the purchase – one of the largest in Chinese corporate history – more evenly between two buyers instead of just one. Wanda Hotel Development Co. Ltd. shares were up 7.8% in early trading in Hong Kong; Guangzhou R&F Properties Co. Ltd. shares were up 9.8%; and Sunac China Holdings Ltd. shares were up 15.4%.

Following the rally, Sunac shares have recouped all of their losses, including a 12% decline in the week before the first deal was formally announced. Wanda Hotel shares are still 9% below their levels before the original deal, but had previously dropped by as much as 30%. The rally for R&F shares means they are now trading near a four-year high.

Contact reporter Yang Ge (geyang@caixin.com)