China Vanke agreed to take a 4.9% stake in Cushman & Wakefield ahead of its upcoming $6 billion IPO.
This news comes on the heels of a recent trend of Chinese investors vacating the U.S. real estate market, divesting their assets at the behest of Beijing.
Nevertheless, Vanke plans to move forward with the purchase of up to 10.6 million Cushman & Wakefield shares, subject to stock-sale restrictions, according to the Wall Street Journal.
The two companies are reportedly discussing business opportunities in China.
Cushman plans to pocket $719.3 million from its IPO at $16 to $18 per share. Vanke’s investment will account for roughly $166.7 million of the proceeds.
Other big stake holders include TPG Capital, PAG Asia Capital and Ontario Teachers’ Pension Plan. These principal shareholders will retain voting control of Cushman.