PAG to buy 51% of China Evergrande's services arm for $510m

· Finance · China · Hong Kong

Asia-focused private equity firm PAG agreed to buy 51% of China Evergrande's property services arm for $510 million, according to Nikkei Asia. The deal hands a controlling stake in the unit to PAG as Evergrande, the heavily indebted Chinese developer, continues to work through its restructuring. The services business is the property-management arm of the group, distinct from the developer's core construction operations. The transaction is one of the larger private-equity commitments to a Chinese property-linked asset in the current cycle and gives PAG control of a business whose value rests on fee income from managed estates.

Why it matters：The sale shows distressed Chinese property groups can still divest subsidiaries to private equity, a test of whether asset sales can fund restructurings in the sector.

Key points

  • PAG is buying a 51% controlling stake.
  • The unit is Evergrande's property-management arm.
  • The purchase price is $510 million.

Sources (original reporting)

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