China’s biggest developer may spin off its property management business

The unit is the company’s second-biggest revenue generator

TRD New York /
Apr.April 11, 2019 09:30 AM
China Vanke CEO Zhu Jiusheng (Credit: Twitter and iStock)

China Vanke CEO Zhu Jiusheng (Credit: Twitter and iStock)

China Vanke, the country’s biggest developer by market capitalization, is considering an IPO.

The company is weighing a Hong Kong listing of its property management business, Bloomberg reported. The firm has spoken with advisers about a share sale that could raise as much as $1 billion. The offering could happen next year.

Vanke would join other Chinese developers — including Country Garden Holdings — in spinning off their management units. That business tends to face less fluctuations from policy changes and economic cycles. Country Garden Services Holdings Co. was listed by introduction last year, while China Aoyuan Group’s services arm raised $94 million in a Hong Kong IPO last month.

Talks are still in early stages, the report said. And the timeline and amount of fundraising could change. A representative for the property management unit told Bloomberg they have no current plans for a listing.

Property management and related services were China Vanke’s second-largest revenue generator. The business contributed 9.8 billion yuan ($1.5 billion), or about 3.3 percent of the developer’s total revenue last year, according to its annual report.

MSCI China Real Estate Index has risen 32 percent this year as the country’s property market begins to recover. Home sales surged in March. China Vanke’s Hong Kong-listed shares have climbed 26 percent since the beginning of the year.

Last year, China Vanke took a 5 percent stake in Cushman & Wakefield ahead of its IPO. Cushman agreed to sell 10.2 million shares in the company through a private placement deal to a unit of China Vanke. [Bloomberg] — Meenal Vamburkar


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
United Wholesale Mortgage Mat Ishbia and Gores Holdings IV CEO Alec Gores (Photos via United Wholesale Mortgage and Gores)

United Wholesale Mortgage goes public with $16B valuation

United Wholesale Mortgage goes public with $16B valuation
Nightingale’s Eli Schwartz and 111 Wall Street (Credit: Google Maps)

Nightingale, Wafra seek $860M to redevelop 111 Wall Street

Nightingale, Wafra seek $860M to redevelop 111 Wall Street
(iStock)

Banks see CRE loans delinquencies hit 5-year high

Banks see CRE loans delinquencies hit 5-year high
Eric Wu (left) and Chamath Palihapitiya (Getty, iStock)

Opendoor confirms $4.8 billion IPO

Opendoor confirms $4.8 billion IPO
Opendoor CEO Eric Wu (Wu via Resolute Ventures; iStock)

iBuyer Opendoor eyes $5B IPO via blank-check firm

iBuyer Opendoor eyes $5B IPO via blank-check firm
30-77 Vernon Boulevard in Queens and Cape Advisors CEO Craig Wood (left) and 720 West End Avenue in Manhattan with Brack Capital Real Estate CEO Ariel Podrojski (right) (Images via Cape Advisors; Google Maps; LinkedIn)

The biggest loans of the slowest month: August’s real estate lending

The biggest loans of the slowest month: August’s real estate lending
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...