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CDL unit to invest 100m yuan in China's online apartment rental platform (Amended)
CITY Developments Ltd (CDL) said on Monday its wholly owned subsidiary CDL China will invest 100 million yuan (S$20.4 million) for a 20 per cent stake in mamahome, a fast-growing Chinese online apartment rental platform.
mamahome provides an online booking website for both apartment owners and rental customers. It also has online management software and other value-added services including housekeeping, renovation, 24-hour concierge and call centre.
In addition, mamahome provides management for its own brands of serviced apartments: Suisse Place, Locca and Login.
In a press release, CDL also said mamahome caters to the rapidly growing demand for mid to long-term leasing from leisure travellers to business executives on assignments and postings.
Currently, there are more than 100,000 apartment listings on mamahome, spanning over 20 cities in China. More than 75 per cent of the apartments are located in key gateway cities - Shanghai, Beijing and Guangzhou.
Mark Yip, CDL chief marketing officer and CDL China CEO, said: "Our partnership with mamahome provides an immediate entry into a fast-growing sector driven by business and leisure travel in China. It will contribute to future long-term recurring income streams to CDL.
"Operating under an asset-light model with a focus on Internet expansion, mamahome represents an efficient manner to grow market share and can also serve as a good platform to enhance leasing efforts for the group's residential leasing properties and serviced apartments."
CDL closed 4.4 per cent higher at S$8.96 on Monday.
Amendment Note: Due to a conversion error, an earlier version said the investment was S$20.3 million. It should be S$20.4 million, CDL has clarified.