58.com acquires stake in Vanke Property Management
29 Mar 2017
Vanke Property Management, a partially-owned subsidiary of the major Chinese residential real estate developer, Vanke, attracted 58.com as a strategic investor. The classifieds services giant acquired a 5-percent stake in Vanke Property Management for an undisclosed amount late last year. The investment came to light in Vanke’s 2016 annual report.
The move signals further diversification of 58.com’s position in the booming Chinese real estate sector, with the company having previously acquired the leading real estate listings platform Anjuke, in 2015, for $267 million U.S.. (Also read our report on a planned launch of Anjuke in Hong Kong.)
Industry insiders have also suggested the move will have knock-on benefits for 58.com’s “58 Home” subsidiary, a multi-category local services platform. By wrapping up 58 Home’s on-demand services with property management services of Vanke, 58.com is hoping to boost the flagging bottom line of 58 Home.
Founded at the end of 2015, Vanke Property Management was fully spun off from the Vanke Group in September 2016. Vanke continues to hold a 63-percent stake in the company.
According to Vanke’s 2016 annual report, property management services netted 4.3 billion RMB ($620 million U.S.) in revenue in 2016, a 43-percent increase year-on-year.