CDL China Limited (CDL China), a wholly owned subsidiary of City Developments Limited‘s (CDL), will invest 100 million yuan ($15 million) for a 20 per cent stake in Chinese online apartment rental platform mamahome.
mamahome an online booking website for both apartment owners and rental customers, caters to the increasing demand for mid to long-term leasing from tourists and business executives. It also provides a online management software and value-added services which include housekeeping, renovation, 24-hour concierge and a call centre.
Yuan Ye, chairman and founder, mamahome said, “The apartment rental market in China is entering an exciting era. Driven by current policy incentives on the real estate rental business and the existing large stock of completed apartments across China, the market expects a significant increase in the total transaction volume in rental business. Through the strategic partnership with CDL, we will be able to integrate our expertise in China with CDL’s strong branding and experience in the global hospitality sector, offering customers a seamless Online-to-Offline experience and high quality services.”
mamahome currently has more than 100,000 apartment listings with 75 per cent of them located in Shanghai, Beijing and Guangzhou. It also provides management for its own brands of services apartments: Suisse Place, Locca and Login.
Upon completion, mamahome will be jointly owned by founder Shanghai Chongfu (56 per cent), financial services firm E-House Capital (24 per cent) and CDL China (20 per cent).
Mark Yip, CDL chief ,marketing officer and CDL China CEO, added, “Operating under an asset light model with a focus on internet expansion, mamahome represents an efficient manner to grow market share and can also serve as a good platform to enhance leasing efforts for the Group’s residential leasing properties and serviced apartments.”
The news comes after Tujia.com, the Chinese apartment sharing online platform, often referred to as China’s answer to Airbnb Inc, patterned with Ascott, a serviced residence business unit of CapitaLand back in March.
CDL announced in August a 0.2 per cent rise in second-quarter net profit to $133.8 million on a 32.4 per cent revenue jump to $1.09 billion.