Wanda and Vanke forge win-win alliance

By Cherry Cao | May 14, 2015, Thursday |

Online Edition

DALIAN Wanda Group and China Vanke Co, two of the country's leading real estate developers, have entered into a strategic alliance to accelerate growth of both companies.

Wanda, controlled by billionaire Wang Jianlin and specializes in commercial property development and management, and Vanke, the world's largest residential property developer, signed a cooperation agreement in Beijing today as the two giants are seeking deep-level and long-term cooperation. The two companies will form a joint venture for future land acquisitions and joint property development.

"Vanke is a perfect partner for Wanda and the tie-up between the two companies will not be confined within the country as both companies have overseas operations," said Wang, founder of Wanda. "Our future cooperation will probably involve some mega projects with investment exceeding 100 billion yuan (US$16.13 billion)."

The strategic alliance between Wanda and Vanke could be a win-win one, industry analysts said.

"While details regarding their cooperation are yet to be announced, their alliance does make sense as these two companies are indeed complementary to each other, both of them leaders in their own field of expertise," said Lu Qilin, a researcher at Shanghai Deovolente Realty Co. "The force-joining movement will help both companies further sharpen their edges in a market where competition remains fierce."

China Vanke's yuan-denominated shares fell 0.75 percent today to 14.59 yuan a share while its Hong Kong-listed shares rose 1.6 percent to HK$19.92 (US$2.57) a share. Wanda Commercial Properties, which went public in Hong Kong in January, closed 1.8 percent up at HK$68.2 per share.

China Vanke sold more than 18 million square meters of new properties last year with a combined value of over 215 billion yuan while Dalian Wanda has 109 Wanda Plazas in operation across the country by the end of 2014 with another 70 under development.

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Wanda and Vanke forge win-win alliance

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