HONG KONG Chinese real estate giant Dalian Wanda has finalised a deal to sell an iconic Madrid property, citing uncertainties over Spain's market and the local political environment, the firm's hotel unit said in a stock exchange filing on Friday.
Wanda Hotel Development Co Ltd (0169.HK) will sell the property to Spanish property developer Baraka Global Invest in a deal valued at 272 million euros ($283.15 million), it said.
The Chinese firm, which bought the property in 2014, flagged the potential sale in July after plans to develop the historic building into a luxury hotel ran into resistance.
Wanda Hotel said the disposal was driven by "the market and political environment in Spain and the resulting uncertainties" around the project.
It had planned to re-develop the property into a high-end hotel and residential complex.
Wanda Hotel said it would use the funds from the sale to repay loans and finance other projects. It said it had not yet identified any specific potential targets for investment.
Parent group Dalian Wanda owns more than 200 plazas and hotels across China, and has in recent years gone on an overseas acquisition spree which also includes a stake in Spanish football club Atletico Madrid.
($1 = 0.9606 euros)
(Reporting by Jess Macy Yu; Editing by Adam Jourdan and Stephen Coates)