Evergrande sells property unit stake for $3b

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Chinese Evergrande Group established it had sold 28% of a property management unit for $3 billion, bringing in strategic investors ahead of a possible IPO for the unit.

The introduction of strategic investors will enhance the corporate profile of the business and support its growth.

Fourteen investors bought into the deal, including Chan Hoi Wan, also a major shareholder in Chinese Estates Holdings Ltd who purchased 5.4% and Huatai International which bought 4.8%.

Sequoia Capital, CITIC Capital and Tencent Holdings also invested, Evergrande said. 

The property developer said last month it was considering a spin-off and separate listing for the unit, which is called Mangrove 3 Ltd.

The property management unit had a profit of 922.5 million yuan ($133 million) in 2019, nearly four times higher than a year earlier.

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