Indonesian Billionaire Sukanto Tanoto’s Pacific Eagle Buys Wanda’s Shanghai Luxury Hotel

The Wanda Reign on the Bund, the most expensive hotel in China constructed at a cost of 3.4 billion yuan ($479 million), has been acquired by Pacific Eagle Real Estate, a company controlled by Singaporean-Indonesian pulp and paper billionaire Sukanto Tanoto. The Singaporean family office bought the luxury property from the financially troubled Chinese developer Dalian Wanda Group for an undisclosed amount. However, according to reports from real estate website Mingtiandi, the purchase price could be as high as 1.7 billion yuan ($240 million).

Located in Shanghai’s historic Bund waterfront district, characterized by its Western art deco architecture, the Wanda Reign has been regarded as one of the most luxurious hotels since it opened in 2016.

"As a long-term buyer, Pacific Eagle Real Estate aims to increase capital by acquiring the Shanghai Wanda Reign on the Bund hotel," announced a Pacific Eagle spokesperson via email. This purchase marks Pacific Eagle's second hotel investment after the 304-room Mondrian Duxton Singapore.

Pacific Eagle, part of the Tanoto family's Royal Golden Eagle (RGE) conglomerate, has recently moved into the Singaporean real estate market. In 2022, it bought Tanglin Shopping Centre in Singapore’s premier shopping district for S$868 million ($645 million).

Besides investments in Singapore, Pacific Eagle, along with China Resources Capital, is engaged in constructing a 21-story office tower in Beijing and developing a business park. The company also owns properties in London and Munich.

Apart from the real estate sector, Tanoto is actively pursuing an expansion in tissue production. In the previous month, RGE proposed to acquire Vinda International Holdings, China's largest tissue maker, for HK$26 billion ($3.3 billion).

Tanoto, worth $3.15 billion and listed at No. 20 on Indonesia's 50 Richest list as of December, founded RGE over half a century ago. Starting as a modest spare parts supply shop in Medan, Indonesia, the business has grown into a global entity with 60,000 employees and a presence in pulp and paper, palm oil, and energy sectors.