Chinese real estate developer Dalian Wanda Group plans to expand into e-commerce.

The company is to tie up with e-commerce companies to launch an online business, with an initial investment of 5 billion yuan ($812 million).

Reports say Alibaba and Tencent could be potential partners.

Steven McCord, head of research for North China with US-based real estate adviser Jones Lang LaSalle, finds Wanda’s plan sound.

“It is wise for the physical retailer to explore an O2O strategy, which allows consumers to discover products online and then go to shopping centres to buy them,” says McCord.