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

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

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
Blackstone Group's Stephen Schwarzman, KKR's Henry Kravis and Apollo's Leon Black (Getty, Facebook, iStock)
Blackstone, Apollo, KKR take market hit on Evergrande tumult
Blackstone, Apollo, KKR take market hit on Evergrande tumult
Chinese developers in US struggle as Evergrande mess threatens business back home
Chinese developers in US struggle as Evergrande mess threatens business back home
Chinese developers in US struggle as Evergrande mess threatens business back home
Turnbridge Equities founder Andrew Joblon, KKR co-founder Henry Kravis and the distribution center (Getty, Turnbridge)
Turnbridge, Dune land $381M loan for Hunts Point site
Turnbridge, Dune land $381M loan for Hunts Point site
Vanbarton Group’s Gary M. Tischler and Richard Coles with Marble Collegiate Church at 1 West 29th Street (Getty)
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
Northwind Group managing partner Ran Eliasaf and 165 Lexington Avenue (Northwind Group, Brooklyn North Capital)
Brooklyn North Capital, RiverBrook score $49M loan for Kips Bay condo
Brooklyn North Capital, RiverBrook score $49M loan for Kips Bay condo
One man, two companies, three bankruptcies
One man, three bankruptcies: Verrino Construction files for Chapter 7
One man, three bankruptcies: Verrino Construction files for Chapter 7
arrow_forward_ios

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

Loading...