Several major backers of Chinese real estate agency Lianjia are set to exercise an option to divest their shares in return for an equivalent holding in the company’s open platform listings site Beike (AKA, Ke.com). This according to a company insider who spoke to The Time Weekly. These backers include tech giants Tencent and Baidu, and property development stalwarts Sunac China Holdings and China Vanke.
The insider also indicated that Tencent is gearing up to increase its stake in Beike, with a further private funding round in the company expected to be completed in the coming months. Tencent is also a backer of Lianjia’s co-living rental brand Ziroom, which is valued at $3 billion U.S.
Just two months after launching in May 2018, Beike was spun-off as an independent business entity, with Lianjia’s executive structure taking over parallel roles at the listings site. The company’s vice chairman Yan Miceng confirmed that Beike would eventually become the larger of the two brands.
China Vanke invested 3 billion RMB ($446 million U.S.) in Lianjia in 2017, not long after Sunac China had dropped 2.6 billion RMB in return for a 6.25-percent stake in China’s largest real estate agency brand. In September 2018, Lianjia raised a further $2 billion U.S. from investors, including Tencent and Baidu. The Beijing-based company is currently valued at about $13 billion U.S., according to the Wall Street Journal.
Beike has topped a recent list of the 500 fastest growing technology companies in the Asia-Pacific region by Deloitte. The real estate vertical has logged a “32,179 percent” revenue growth rate since launching in April 2018.
The company operates an open platform listings site offering new, second-hand and rental properties. More than 80 real estate agency brands have now signed up to the site, along with 168,000 individual agents. The company also stated that the platform’s MAUs have topped 10 million. Lianjia estimates that it will be handling 2 trillion RMB in transactions annually, within three years.