7 days ago
- Business
- South China Morning Post
Evergrande's liquidators hire UBS and Citic to sell US$1.1 billion property service subsidiary
Liquidators of
China Evergrande Group , the developer whose default in 2021 set off a broader years-long
property debt crisis , has hired bankers to sell a property management unit after previous attempts failed, people familiar with the matter said.
The court-appointed liquidators are working with
UBS Group and
Citic Securities to seek potential buyers for the subsidiary, Evergrande Property Services Group, according to the people, who requested not to be named because the information is private.
The move comes as China Evergrande Group
announced its delisting on Tuesday . The talks are preliminary and could be subject to change, the people added. Evergrande did not respond to a request for comment. UBS and Citic declined to comment, while the liquidators could not immediately respond.
Evergrande Property Services plays a key role in asset recovery for creditors, and the firm is being given 'the highest priority' in terms of attention, the liquidators said on Tuesday. Its HK$9 billion (US$1.1 billion) market value and 12.8 billion yuan (US$1.8 billion) in revenue from last year 'represents a very substantial potential source of value,' they added.
The firm reported net income of 1 billion yuan in 2024, according to its annual report. It had 3,000 projects under the operation.
Still, any sale faces no shortage of hurdles. Shares in the unit have plummeted about 96 per cent from a peak in 2021 and have traded as a penny stock for several years now. The company said the liquidation of its parent, China Evergrande Group, has weighed on brand perception, market expansion and project operations.
