Grande plans

17 August 2020 By Jennifer Hughes Follow @JennHughes13

The country’s largest developer is again taking a quirky approach to a trend. As rivals float property management arms, Evergrande sold 28% of its own to 14 investors at a $10.7 bln valuation. They have a put option if there’s no IPO, but boss Hui Ka Yan now has options too.

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China Evergrande on Aug. 17 warned that first-half net profit would drop 46% from 2019 levels as a result of the Covid-19 pandemic, foreign exchange fluctuations and investments in battery-powered cars.

The company said on Aug. 14 it had sold 28% of its property management arm to a group of investors for HK$23.5 billion ($3 billion). It said the proceeds would be used for general corporate purposes.

Sunac China Holdings is planning to spin off its management arm, it said on Aug. 6, arguing the deal would allow the management arm to fund its development independently while allowing Sunac to continue to benefit from its dividends.

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