CBRE Forms JV with Chinese Developer Vanke

CB Richard Ellis Inc. and China Vanke Co., a major residential developer in China, have formed a joint venture to provide property management services to high-end residential properties developed by Vanke. Under the terms of the JV, the new entity will be managed by executives from both companies, and be headquartered in Shanghai. According to CBRE, the JV will combine its skills in international property management best practices with Vanke’s knowledge of many local markets in China. Shenzhen-based Vanke currently operates in the Pearl River Delta Region, which includes Shenzhen, Guangzhou (Canton) and other cities; the Yangtze River Delta Region, which includes Shanghai and other cities; the Huan Bohai Region, which includes Beijing and other cities; and Wuhan and Chengdu. Vanke has grown with the rapid expansion of the Chinese economy. All together, according to recent filings Shenzhen Stock Exchange, Vanke sold 5.18 million square feet of property in April worth 4.32 billion yuan (U.S.$618.16 million), up 39.3 percent and 73.5 percent, respectively, over the same period a year previously. In the first quarter of 2008, the company said it sold 10.76 million square feet of property, up 82.9 percent from the same period in 2007. The JV will manage single-family houses, townhouses and apartments in various parts of China, beginning this fall. CB Richard Ellis currently has 14 offices in greater China (including the mainland, Hong Kong and Taiwan), and is planing to open others.