Wanda Commercial Properties has secured the investments of four companies valued at 24 billion yuan (US$3.91 billion) into the construction of 26 Wanda Plazas. This also signals Wanda's asset light strategy where it will take a balanced approach towards its own development with an entirely new business model, the company said.

Wanda signed an investment framework agreement with Everbright Ashmore (Beijing) Real Estate Investment Consultancy Co., Harvest Capital Management Co., Sichuan Trust Co.and Kuaiqian Payment and Settlement Service Co.

In previous years, Wanda Commercial's innovative urban complexes gained great success in China owing to their speed and scalability, and as a global industry leader the model attracted a great deal of interest and even imitation. With urban complexes, the investment, construction and management of commercial properties are all overseen through Wanda. Cash flow for the complexes are maintained with real estate sales being invested into Wanda Plazas, and is often deemed asset heavy.

In order to ensure sustainable, long term development, Wanda spent a year researching alternatives and proposed a new asset light model for Wanda Plaza. With cooperating partners investing into a special fund, Wanda would be responsible for design, construction, canvassing and operations under Wanda Plaza's Huiyun information management system and e-commerce system brands.

With this approach, the company said the net rental income will be shared between Wanda and the investors. In the asset light model there are no connections to real estate sales, rendering it a total financing investment practice. Besides the rental income, investors can also enjoy all the value-added benefits of investment.

This new model has considerable significance to Wanda. First, by implementing a balanced approach to ensure sustainable long term development, Wanda Commercial effectively enriches Wanda's overall business model. Second, the asset light model offers the company an income of cash flow from rental instead of real estate sales, removing them from potentially uncertain market fluctuations. Third, Wanda does not invest anything and still receives a substantial income every year.