Hong Kong’s subway operator, Mass Transit Railway Corp, has invented perhaps one of the world’s most successful business models by selling land above or adjacent to its railway stations to property developers.
Across the Sham Chun River, China Vanke wants to kill two birds with one stone by adopting this “railway plus property” model in Shenzhen to quickly increase its land bank and, more importantly, fend off a hostile takeover attempt by Baoneng, a little-known financial conglomerate.
Baoneng, which is controlled by low-key founder Yao Zhenhua, became China Vanke’s largest shareholder in December after building up its stake in less than six months.
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