Hong Kong-listed Chinese property developer Sunac China Holdings Ltd. has agreed to acquire a 6.25% stake in online real estate agency Lianjia for RMB2.6 billion (US$375 million) by subscribing to Lianjia’s new share issuance, the company announced yesterday.
As part of the strategic transaction, Sunac will appoint a director to Lianjia’s board and begin cooperation with Lianjia, also known as Home Link, on various aspects.
After the completion of the new share issuance, Lianjia will be valued at RMB41.6 billion (US$6 billion).
Founded in 2001, Lianjia operates the website Lianjia.com, featuring one of the largest listings of new home sales and rentals in China. It currently has a 7% market share in China’s online and offline real estate services market, the company says.
In April 2016, the company raised RMB6 billion (US$926 million) in a series B financing round from Huasheng Capital, Baidu Inc., Tencent Holdings Ltd., Source Code Capital, Hillhouse Capital and Matrix Partners China.
That round valued the company at RMB36.8 billion (US$5.31 billion) post-money, and carried an IPO clause, which requires Lianjia to buy back its shares from investors at an annualized rate of 8% if it fails to complete an IPO in Shanghai, Shenzhen, Hong Kong or the NASDAQ within five years.