SHENZHEN, China, Oct. 19, 2018 /PRNewswire/ -- Vanke Service Co., Ltd. ("Vanke Service"), a leading provider of property management services in China, has launched a standalone sub-brand for its commercial property management services, as part of the company's growing effort to make headway in this booming sector in China. This move highlights Vanke Service's two-pronged strategy focusing on the management services of both residential and commercial properties.
Mr. Zhu Baoquan, Chief Executive Officer of Vanke Service, announced the launch of the standalone sub-brand at the recent 4th China Property Management and Innovative Development Forum in Shenzhen, Guangdong Province, China. Vanke Service will also establish a new subsidiary dedicated to delivering commercial property management services, said Mr. Zhu. The brand launch also marks a strategic shift for Vanke Service to pursue quality growth as merger and acquisition activities in property management services are cooling down in China.
Investment in China's commercial real estate sector grew 30% year-on-year in 2017 to reach RMB 273 billion, according to an earlier report published by real estate consultancy service provider Cushman & Wakefield. Vanke Service entered this sector in 2015 and has achieved rapid growth. The sector contributed RMB 1.34 billion to the company's total revenue last year. In recent years, the company has clinched partnerships with a number of leading Chinese companies such as Internet giants Alibaba, Tencent, and JD.com, telecoms behemoth Huawei Technologies, mobile operators including China Mobile and China Unicom, and Tongji University. Vanke Service had completed 481 commercial projects in 52 cities in China by August 2018.
Earlier this year, Vanke Service joined the Building Owners and Managers Association (BOMA) International, which represents leading owners and managers of commercial property types around the world. In July, Vanke Service purchased a 4.9 percent stake in Cushman & Wakefield, one of the world's five largest commercial real estate services providers, becoming its fourth-largest shareholder through a concurrent private placement at the IPO. According to Cushman & Wakefield's prospectus, the two companies plan to discuss possible opportunities related to their respective businesses in the Greater China region. These moves, in addition to the launch of the standalone sub-brand, will help enhance the company's service capabilities in the commercial property sector by bringing in international expertise and expanding the talent pool, while diversifying beyond its roots.
"Vanke Service has been a trailblazer in China's residential property management sector in the past decades," said Mr. Zhu. "We are always ready to learn from and collaborate with established international players in the commercial sector to enhance our service capabilities and achieve our goal of becoming a strong and long-lasting company."
Vanke Service is a subsidiary of China Vanke Co., Ltd., one of the largest real estate companies in China, which is listed on the Shenzhen and Hong Kong stock exchanges. Established in 1990, Vanke Service operates in 69 cities in China with the greatest development potential. Vanke Service also strategically entered the Hong Kong market last year with the goal of leveraging its residential property management experience and technology-driven expertise to offer superior services to clients in Hong Kong. It had completed a total of 2,314 contract projects in China, including 1,833 residential projects and 481 commercial office projects, by the end of August 2018. Its total contract area exceeds 460 million square meters and it provides services for 3.28 million families. It currently has more than 60,000 in-service employees. Vanke Service has been ranked as the No. 1 property management service provider in China for nine consecutive years by China Property Management Institute. Its brand is currently valued at RMB 9.5 billion.
