Core Viewpoint - Ingka Group is planning to sell 10 of its Huiju shopping centers in China, with the first three located in Wuxi, Beijing, and Wuhan, involving a total investment of 16 billion yuan [1][4]. Group 1: Sale Details - The first three shopping centers for sale are in Wuxi, Beijing, and Wuhan, with a total investment of 16 billion yuan, led by a fund backed by Taikang Life [1][4]. - The fund has a total scale of 8 billion yuan, with Taikang Life subscribing 3 billion yuan, and other participating insurers contributing an additional 3 billion yuan [1]. - Ingka Group will also invest approximately 2 billion yuan in the fund's subordinate tranche and plans to secure the remaining 8 billion yuan through bank financing [1]. Group 2: Performance of Shopping Centers - Wuxi Huiju, opened in 2013, has a total construction area of 250,000 square meters and a commercial leasing area of 150,000 square meters, with projected sales of 4.3 billion yuan and over 18 million visitors in 2024 [3]. - Beijing Huiju is one of the most popular shopping centers in South Beijing, with an annual foot traffic of about 30 million and expected sales around 10 billion yuan [3]. - Wuhan Huiju, opened in 2015, has a total construction area of approximately 350,000 square meters, with a commercial area of about 170,000 square meters and a stable weekend average foot traffic exceeding 50,000 [3]. Group 3: Strategic Reasons for Sale - The sale of these assets is primarily driven by financial pressures faced by Ingka Group, which reported a 5.5% decline in revenue to 41.864 billion euros and a 46.5% drop in net profit to 806 million euros for the 2024 fiscal year [4]. - Selling these shopping centers is expected to alleviate some of the cash flow pressures on the group [4]. Group 4: Background of Ingka Group - Ingka Group is the largest franchisee of the IKEA brand, accounting for approximately 90% of IKEA's global retail sales [4]. - The ownership of the IKEA brand belongs to Inter IKEA Group, which is responsible for global development, production, procurement, and supply chain management of IKEA products [4]. - Ingka Group has been operating in China since 1998 and entered the commercial complex business in 2009 with the Huiju shopping centers [6][7].