Madrid mayor says China's developer not withdrawing controversial building project

A Wanda Plaza in Yichang, Hubei province.[Photo provided to China Daily]

MADRID -- Madrid mayor Manuela Carmena confirmed on Tuesday that China's Wanda Group is not withdrawing its project to convert a landmark building into a luxury hotel, apartments and a shopping center.

"We are not working under the idea that Wanda Group is leaving," Carmena told a press conference.

"I think Wanda Group is reflecting on the conversations and proposals that we have had recently," the mayor added, saying the city is "interested in doing everything possible to allow a hotel to be built."

Rumors broke out two weeks ago that Wanda Group, a major Chinese property developer, was withdrawing the multi-million-euro project and sacking its employees in Madrid because the Madrid authorities had refused to permit it to dismantle the facade of Edificio Espana in central Madrid.

Edificio Espana was the tallest building in Europe on its completion in the early 1950s.

Wanda Group has said it "does not comment on rumors."

Wanda had said taking down Edificio Espana's entire structure was best for safety reasons, but Madrid authorities said that violates building regulations.

The two sides have held meetings to discuss how to ensure the project will go ahead while allowing the facade to remain intact. The project is expected to significantly boost the local economy.