Vanke entered into a non-binding agreement with the potential seller in December to purchase certain assets. Although the initial timeframe to reach a deal has since passed, talks are ongoing, it said in a filing to the Hong Kong bourse late on Sunday.
Vanke has appointed intermediaries to conduct due diligence, it added. It did not identify the potential seller.
Vanke, currently embroiled in a high-profile power struggle, has said that its business operations have suffered as a result of the battle for control.
Reporting by Donny Kwok; Editing by Edwina Gibbs