Century 21 China Real Estate today announced that it has signed an agreement to acquire a majority ownership stake in Beijing Shanggu, an established local primary real estate agency service provider based in Beijing focusing on consulting and sales for commercial real estate projects.
“We are pleased to announce this important strategic acquisition with Shanggu which, since its establishment in 2002, has been an active participant in the local market with a specific stronghold in Northern China,” comments Mr. Donald Zhang, Century 21 China Real Estate’s chairman and chief executive officer. “This move will complement Century 21 China Real Estate’s existing primary residential agency business, helping to expand our offering to developers and create opportunities to build our presence in China’s fast growing commercial real estate market.”
Beijing Shanggu currently has a pipeline of approximately 2.57 million square meters gross floor area of primary commercial projects, of which approximately 260,000 square meters are currently available for sale. Primary commercial properties have been less affected by the recent restrictive policies compared to the residential market. Following the completion of the acquisition, the business will continue to be operated by the current management team.
With $197.1 billion in transactions in 2010, China is the world’s largest real estate market. The country experienced 23 percent in growth compared to the year before.