Dalian Wanda drops London Nine Elms Square deal

Dalian Wanda Commercial Properties, a subsidiary of China's Wanda Group, has walked away from a 470 million pound (603 million US dollars) land purchase deal for Nine Elms Square in London.

The sale of the 10-acre site has been successfully completed, St. Modwen Properties PLC announced on its website on Monday, without identifying the buyer.

However, St. Modwen said that the transaction followed an exchange of contracts announced on June 21, the same time Dalian Wanda announced it was purchasing the land and paid 10 percent of the price as down payment.

Ownership of the square belongs to a third party and not Dalian Wanda, Reuters reported Tuesday, citing the company's spokesperson.

Guangzhou R&F Properties Co and CC Land Holdings Ltd together replaced Wanda to buy the square, Bloomberg reported Tuesday.

It's the latest move by Wanda to reduce its property assets.

Last month, it sold 77 hotels for 19.9 billion RMB to R&F and 91 percent equity in 13 tourism projects for 43.8 billion RMB to Sunac China.

Wanda has been well-known for its extensive overseas investment but recently the Chinese government suggested domestic enterprises be cautious about overseas acquisitions and decided to limit foreign investment in certain sectors including real estate and entertainment.

(CGTN)