China Vanke sets up asset management JV with Cushman & Wakefield

An employee walks past a logo of Vanke at its headquarters in Shenzhen, south China's Guangdong province, November 2, 2015. REUTERS/Tyrone Siu

Vanke Service, an affiliate of Chinese residential property developer China Vanke, on Thursday inked an agreement with real estate brokerage firm Cushman & Wakefield to set up a joint venture to enhance their real estate business in Greater China.

The joint venture plans to focus on commercial property and asset management as well as integrated facility management.

“Vanke Service opened up a route for internationalization through business integration,” said Vanke Service CEO Zhu Baoquan, as cited by Chinese state-owned publication China Economic Net.

Commercial real estate transaction volumes in the country reached a record high of $25 billion in the first half of 2019, driven by a bumper in the first quarter when investment volumes jumped 174 per cent year-on-year to $17 billion, according to a report by Jones Lang LaSalle.

The joint venture is the latest attempt by the two companies to advance their cooperation to capture business opportunities in China’s massive real estate market.

Vanke Service previously agreed to acquire 4.9 per cent stake in Cushman & Wakefield, ahead of the latter’s planned initial public offering (IPO) on the New York stock exchange, according to documents filed with the Securities Exchange Commission in late July 2019.

Under the terms of the agreement, Vanke Service would purchase up to 10.6 million shares in Cushman & Wakefield, which accounted for about $166.7 million based on the final share price of $17 apiece. The deal made Vanke Service become the firm’s fourth-largest shareholder, after TPG, PAG Asia Capital, the private-equity business of PAG, and Ontario Teachers’ Pension Plan.

China Vanke booked revenue of 139.32 billion yuan ($19.82 billion) in the first half of 2019, up 32.86 per cent year-on-year. The gross profit increased 42.74 per cent to reach 50.49 billion yuan ($7.18 billion) during the same period, according to the company’s 2019 interim report.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.