CDL to nab 20% stake in a Chinese online apartment rental platform

It will invest $20.4m in mamahome.

With the aim of extending its recurring income streams, Singapore's City Developments Ltd. (CDL) ventured to the fast-growing apartment rental market in China by investing $20.4 million in a popular online apartment rental platform.

The site is called mamahome, a round-the-clock online booking website, online management software which caters to the growing demand for mid- to long-term leasing from leisure travellers and business executives.

According to mamahome Chairperson Yuan Ye, the site has more than 100,000 apartment listings, spanning over 20 cities in China. Almost three-quarters of the apartments included in the listings are located in prime cities like Shanghai, Beijing and Guangzhou.

"Through the strategic partnership with CDL, we will be able to integrate our expertise in China with CDL’s strong branding and experience in the global hospitality sector, offering customers a seamless Online-to-Offline experience and high quality services,” he said.

For CDL Marketing officer Mark Yip, the partnership provides an the group an entry to the sector mostly driven by business and leisure travel in China.

"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,” Yip explained.

With its investment, CDL will own 20% stake in the online platform, which it will co-share with Shanghai Chongfu and E-House Capital.