PAG to Buy 51% Stake in Evergrande Property Services for HK$4.03 Billion

Hong Kong-based private equity firm PAG has agreed to acquire a 51 per cent stake in Evergrande Property Services Group for HK$4.03 billion (US$513.7 million) from the liquidators of China Evergrande Group. The deal values the property management company at HK$9.0 billion and represents the largest

Private equity firm PAG has agreed to buy a 51 per cent stake in the property-management arm of China Evergrande Group for HK$4.03 billion (US$513.7 million), the largest asset sale to date by the collapsed developer’s liquidators. A PAG-controlled vehicle will pay HK$0.8359 per share for the stake in Evergrande Property Services Group, a 29.5 per cent discount to the unit’s HK$1.185 closing price on Wednesday, the two companies said in a joint announcement to the Hong Kong stock exchange on Friday.

Once the purchase completes, the Hong Kong-based private equity firm is required to make an unconditional cash offer at the same price for the rest of the company. PAG said it will not raise the offer price, and it intends to keep Evergrande Property Services listed. The price values the whole company at HK$9.0 billion. The deal needs approval from the State Administration for Market Regulation, China’s anti-trust watchdog, by 12 February 2027.

For Evergrande’s creditors, the sale would add to the more than HK$3.4 billion that liquidators Edward Middleton and Tiffany Wong of Alvarez & Marsal had recovered across the group by the end of September, according to their second progress report published on 22 October. Even so, the deal value represents only about 1.1 per cent of the HK$360 billion in claims lodged against the developer.

The liquidators are managing the sale through two entities. Evergrande holds 1.4 per cent of the property manager and will receive HK$0.8359 per share. Evergrande’s wholly owned CEG Holdings holds 49.7 per cent and will receive HK$0.7271 per share. A separate letter agreement brings the CEG Holdings price up to the same level as the parent’s, according to the filing. Under it, PAG will pay a further RMB 500 million (US$75 million) at completion towards the British Virgin Islands holding company’s taxes, transaction fees and other liabilities.

Evergrande Property Services provides property management, community living, asset management and community operation services. It booked revenue of RMB 13.7 billion in 2025, up from RMB 12.8 billion a year earlier, with profit of RMB 1.0 billion, according to Friday’s filing. The offer values the company at around 7.7 times its 2025 profit. That is a 268.7 per cent premium to its net asset value per share at the end of June, according to the filing.

This was the third attempt to sell the stake in Evergrande Property Services. In October 2021, Evergrande agreed to sell a 50.1 per cent stake to Hooplife, a unit of Hopson Development, for HK$20.0 billion. Within two weeks it terminated the agreement, saying the buyer had not met the prerequisites for a general offer. After a court ordered Evergrande wound up in January 2024, the liquidators began a new sale process in August 2025. A preferred bidder chosen in March 2026 dropped out late in negotiations, and the process reopened in July, according to the liquidators.