SHANGHAI: Dalian Wanda Commercial Management Group Co has told some investors that a loan that could be used to pay some pre-initial public offering (IPO) investors in one of its units is close to being finalised, according to people familiar with the matter.

The property management company told the investors that several banks, including Shanghai Pudong Development Bank Co, have committed to a combined amount of more than 10 billion yuan (US$1.4bil) of loans, the people said, citing private conversations.

Wanda Commercial may scale back its previous loan-size target, said the people, asking not to be identified as the matter is private. In February, people familiar with the matter said that Wanda had approached banks for a loan of about 30 billion yuan.

The deal isn’t final and could change or be delayed subject to market conditions, the people said. Dalian Wanda Group Co, the parent of Wanda Commercial, and Shanghai Pudong Development Bank didn’t reply to requests for comment.

Tycoon Wang Jianlin gave up control of mall operating unit Zhuhai Wanda Commercial Management Group Co in December as part of an agreement to avoid paying pre-IPO investors after the company failed to list.

Under the terms of the original investments, Wanda Commercial agreed to pay 30 billion yuan plus interest if the unit’s IPO wasn’t completed by end-2023.

 - Bloomberg