The country’s two biggest real estate giants--Dalian Wanda Group and China Vanke Co.--has announce in a press conference, on May 14, Thursday, the forging of a long-term strategic partnership involving land acquisition and project development, according to a statement published on Wanda’s website.
The Global Times reported that under the partnership, Wanda will be responsible for developing commercial properties, while Vanke will engage in developing residential areas.
"There will not be any restructuring between Wanda and Vanke, and we will launch joint ventures to develop new projects," Wang Jianlin, chairman of Wanda, said during the conference.
The report said that the partnership, which is seen to pose challenges to small and medium developers, is not only limited to the setting up of Wanda Plaza around Vanke's residential areas, but could also include expansion in massive projects at home and abroad that is worth more than 100 billion yuan ($16.13 billion).
Yu Liang, president of Vanke, said that the company will maintain the operation of its commercial property business while developing commercial projects in residential communities.
Yu added that the alliance aims for better development of China's real estate industry, which is entering into a "silver age" from the previous "golden age."
The report said that shares of the Wanda Group increased by 1.79 percent on May 14, Thursday; while Vanke's shares rose by more than 5 percent in morning trading, but closed down at 0.75 percent on the same day.
According to analysts, the partnership between the two top developers will help restructure their businesses amid the slowdown in the country's real estate market, which started last year.