(Yicai) Oct. 30 — China Evergrande Group, once China’s largest property developer, has agreed to sell control of its property management arm to investment firm PAG for HKD4 billion (USD513.2 million), marking a major step in the liquidation of the debt-laden company.
The deal will see Hong Kong-based PAG acquire about 51 percent of Evergrande Property Services Group, one of the troubled developer’s key remaining assets, advancing a sale process that began in September 2025 as liquidators sought to recover funds for China Evergrande’s creditors.
China Evergrande and its subsidiary will sell all their shares in Evergrande Property at different prices, the Guangzhou-based property manager announced today. The weighted average transaction price is about HKD0.73 (9 US cents) per share, with the liquidators signing the share purchase agreement on behalf of the sellers.
Once the deal’s conditions are met and the stake transfer is completed, PAG will become Evergrande Property’s new controlling shareholder and launch a mandatory general offer for the remaining shares at HKD0.84 apiece, a nearly 30 percent discount to the stock’s closing price before trading was suspended for one day yesterday.
PAG intends to “maintain the listing status of Evergrande Property” and has no plans to take the company private or delist it, the announcement said. However, whether the firm can remain listed will depend on the proportion of shares held by public investors after the offer closes.
Evergrande Property’s shares tumbled after trading resumed today, closing 17.7 percent lower at HKD0.98. The company has a market capitalization of about HKD10.5 billion (USD1.3 billion).
PAG Expands Into Residential Property Services
PAG is an Asia-Pacific-focused alternative investment firm with more than USD60 billion in assets under management as of the end of June. Industry observers see the acquisition as a key step in expanding its real estate business from commercial properties into residential property management.
Evergrande Property was first put up for sale in 2021, when China Evergrande, then grappling with a liquidity crisis after years of rapid expansion fueled by borrowing, sought to raise cash by disposing of assets. The property management unit, which generated recurring revenue from managing residential communities, was among the group’s key assets earmarked for sale.
China Evergrande’s debt restructuring efforts subsequently ran into difficulties, and the Hong Kong High Court ordered the developer to be liquidated in January 2024. Responsibility for selling Evergrande Property then passed to the liquidators.
Despite its parent’s financial collapse, Evergrande Property has remained profitable. Its revenue rose almost 5 percent from a year earlier to CNY6.9 billion (USD1 billion) in the first half of this year, while profit attributable to shareholders climbed about 10 percent to CNY517 million (USD77.6 million).
As of the end of June, Evergrande Property had about CNY4.2 billion (USD637 million) in available funds and virtually no interest-bearing debt.
Editor: Emmi Laine
