Dalian Wanda to invest $1b for prime property development in Sydney

Dalian Wanda Group, China's biggest commercial real estate conglomerate, said on Monday it is investing $1 billion in a prime property development close to Sydney Harbour, its second large investment in Australia.

The amount includes A$415 million ($327 million) paid to the United States-based private equity firm Blackstone Group for office building Gold Fields House, an undisclosed sum for an adjacent building, Fairfax House, as well as the cost to construct a complex that will consist of a hotel, apartments and retail projects.

The purchase adds to a string of deals as Wanda diversifies away from a weak domestic market and highlights growing Chinese investment in Australia's red-hot property market.

Australia was the third top destination for Chinese property investment after the US and the United Kingdom in the first 11 months of 2014, with around $2.1 billion in inbound investment, according to real estate consultancy firm Savills.

China's Country Garden Holdings and Greenland Group have also made large investments in Australia.

Wanda is backed by China's fourth-richest man Wang Jianlin and last year the group's Dalian Wanda Commercial Properties Co Ltd raised $3.7 billion through a Hong Kong listing.

"We look forward to creating a new Sydney landmark," Wanda said in a separate statement from Blackstone, adding that the complex will include a 185-meter tall building.