Evergrande Real Estate Group (03333.HK) has agreed to buy back a 49 percent stake in a commercial project in Qidong, Jiangsu province, from Japanese investment fund SPARX for US$550 million, the Hong Kong Economic Journal reported Wednesday, citing the developer’s announcement. After the deal, Evergrade will own 100 percent equity interest in the project. The transaction will be funded with the company’s internal capital. SPARX acquired the 49 percent stake from Chinese Estates Holdings Ltd. (00127.HK) for US$500 million last year. Evergrande said the buyback will enhance the company’s ability to manage and control the project as SPARC is only a financial investor.
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