Two of China's biggest property developers are teaming up for local and overseas projects. 

London's Financial Times reported May 14 that China Vanke Co. Ltd. and Dalian Wanda Commercial Properties Co. Ltd. unveiled their "strategic co-operation agreement" to drive a new era for the country's real estate sector. 

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Forbes reported the same day that the two property giants will buy land and jointly develop the acquired sites under the agreement. Dalian Wanda, the property arm of Asia's Richest Man Wang Jianlin, will focus on commercial assets and Vanke will keep an eye on opportunities in the residential front. 

"Our strategic cooperation with Vanke is a first attempt at a brand new direction for the industry. For Wanda, through our cooperation, we will be able to focus on accelerating the implementation of our 'asset-light' business model," Wanda said, according to Forbes' translation of the announcement posted on the group's Weibo account.

Wang commented that China's property sector needs to adapt a new business model to keep up with the growing trend of achieving a balanced supply and demand environment. 

The publication noted that Dalian Wanda owns approximately 39.04 million square meters worldwide, making it the biggest real estate operator globally. 

Industrial Securities property analyst Yan Changming said in a note that the partnership makes sense and is beneficial because the two companies have different core business lines. Financial Times added that the companies have "little overlap inside China." 

Wang was recently named the richest man in Asia, surpassing long-time titleholder Li Ka-Shing, another property mogul from China.  

According to Forbes, China Vanke has a market capitalization of $24.3 billion and ranks 251st from its Global 2000 list. Dalian Wanda, on the other hand, has a market cap of $28.1 billion and debuted at 234 in the Global 2000 list.  

Tagsreal estate, China Real Estate, dalian wanda commercial properties co. ltd., china vanke