Caixin
Nov 07, 2018 07:38 PM
BUSINESS & TECH

Xiaomi Teams Up With Developer to Buy Land for New Beijing Offices

Xiaomi Corp.’s Beijing headquarters is seen on Jan. 28. Photo: VCG
Xiaomi Corp.’s Beijing headquarters is seen on Jan. 28. Photo: VCG

Smartphone-maker Xiaomi Corp. and real estate developer China Resources Land Ltd. have jointly purchased a plot of land in Beijing’s suburbs, a move that industry sources said was made necessary by the former’s fast-expanding business.

Both parties spent a combined 2.7 billion yuan ($390 million) for a 46,848-square-meter (11.58-acre) plot of land in Changping district at a city government auction, according to a statement (link in Chinese) posted on the website of the Beijing Municipal Commission for City Planning and Land Resources Management on Monday.

The statement said the land will be used for the mixed development of offices and residences. Xiaomi didn’t immediately respond to Caixin’s request for comment.

A source close to Xiaomi told Caixin that because the company is expanding fast, it’s looking for a space in which it can accommodate some its 15,000-strong staff.

Xiaomi currently rents its Beijing office space. It has moved its headquarters a few times since its establishment in 2010 as it grew to cope with its rapidly expanding business scope. In moves to expand its business beyond its core smartphone unit, Xiaomi has partnered with a slew of authorized third-party vendors to create a “Xiaomi ecosystem,” through which the firm aims to offers products that cover many of a customer’s daily needs. These include electronic toothbrushes, air conditioners, sports shoes, shower towels, pillows and blankets.

The world’s fourth-largest smartphone-maker marked a new milestone in July when it floated shares in Hong Kong.

Construction started on the company’s first wholly owned headquarters last year. The location, in Beijing’s Haidian district, is expected to open next year.

Caixin understands that after its relocation to the new headquarters, Xiaomi will still rent its current office in the district, which is owned by China Resources, because the new campus isn’t big enough to hold all its workers.

Xiaomi also has regional offices in Wuhan, Hubei province; and Nanjing, Jiangsu province. The Wuhan office focuses on the development of cloud computing, artificial intelligence and new retail solutions, while Nanjing works on smartphones and smart devices, a company employee told Caixin.

Contact reporter Jason Tan (jasontan@caixin.com)

ladingImg
You've accessed an article available only to subscribers
Try 4 weeks for $0.99
SUBSCRIBE
Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.