New World Development Company Limited (“NWD”) announced that it has signed a Memorandum of Understanding (MoU) with the SCP Group (“SCPG”), marking the first PropTech collaboration between Mainland and Hong Kong developers in the Greater Bay Area. Under the MoU, NWD and SCPG will give priority to the use of each other’s PropTech products and services to “add value” to their respective property projects. In the long run, the partnership will also see the two parties joining forces and leveraging their strengths to provide other commercial property operators in the Mainland with one-stop integrated PropTech solutions, in order to expand into new business sectors.
As a subsidiary of China Vanke Co., Ltd., a renowned enterprise in Mainland China, SCPG is a business development platform focusing on providing the public with high-quality commercial property projects and services. As of the end of 2022, SCPG operated and managed over 150 commercial property projects in more than 50 cities in the Mainland, with a management area of nearly 130 million square feet and assets worth approximately RMB100 billion.
The captioned MoU was signed by Paul Sin, Director of Technology & Transformation at New World Development and Bruce Chen, Chief Technology Officer of the SCP Group and General Manager of Shenzhen Yinjia Technologies Co., Limited. According to the MoU, a subsidiary of NWD that provides shared technology service to NWD and Shenzhen Yinjia Technologies Co., Limited, a subsidiary of SCPG, will jointly establish a task force to strengthen cooperation and development in commercial PropTech techniques, talents, and assets of both companies.
Giving Priority to Use of PropTech Products and Services of Both Parties
Both NWD and SCP Group have been dedicated to developing PropTech in recent years. For instance, NWD has launched the first one-stop Property-Purchase Blockchain Platform in Hong Kong; established a blockchain-enabled construction supply chain financing platform, participated by construction service providers and banks; as well as the latest artificial intelligence green energy optimisation solutions and more. In 2019, SCP Group built a cutting-edge digital solution to provide commercial property operators with a one-stop solution that covers investment, construction, preparation and operations. To date, it has served over 200 projects for Mainland Chinese enterprises, including China Vanke Co., Ltd.
The two parties will integrate and jointly develop one-stop property technology solutions and, through giving priority to the use of each other’s products and services in a complementary manner, both parties can add value to their respective projects and promote sustainable development through PropTech research.
New World Development: Important Step in Asset-light Development
Paul Sin, Director of Technology & Transformation at New World Development, said, “NWD and the SCP Group are both pioneers in the development of property technology. Signing this MoU and giving priority to the use of each other’s products or services will allow us to complement each other’s strengths and accelerate the development of PropTech. In addition, through this cooperation, the Group can offer its PropTech products and services to companies outside the Group, opening up new markets. This is an important step in the Group’s asset-light development.”
Bruce Chen, Chief Technology Officer of the SCP Group and General Manager of Shenzhen Yinjia Technologies Co., Limited said, “The SCP Group has been devoted to digitalisation in the past few years and has achieved good results. New World Group has also been innovative in its technology business applications, which has been highly praised by the industry. Currently, the industry is entering the stock era, and operating properties are at a new stage of refined operation. New technologies such as big data, artificial intelligence, and particularly AI Generated Content (AIGC) that has received much attention lately have brought new challenges and new problem-solving ideas to the industry. We hope to work hard with more outstanding peers to jointly foster new creations. With the MoU with NWD, we hope to work closely on our developed products; more importantly, we hope to join forces to utilise our immense strengths to complement each other, and explore the application of technology in the industry.”
In addition, in accordance with the MoU, NWD and SCPG will establish long-term partnership goals of serving their respective member companies in the Mainland and Hong Kong, as well as other businesses or property operators in the Mainland. The two companies will collaborate to provide PropTech products and services to explore new markets and improve cost-effectiveness for each other.