Chinese Property Manager Tests Offshore Bond Market With $400 Million Sale

Wanda Group, once one of China’s most high-profile developers, has been building an asset-light business model to reduce debt generated from buying land and building properties. Photo: VCG

Dalian Wanda Group’s property management arm has tapped the U.S. dollar bond market for $400 million in what is now a rare move for a private real estate firm, many of which have retreated from the offshore bond market after the industrywide credit crisis slammed investor confidence.

The two-year bond, issued by a subsidiary of Dalian Wanda Commercial Management Group Co. Ltd., bears an 11% coupon, and was priced to a yield of 12.375%, according to Thursday data compiled by Bloomberg.

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