Date
21 January 2017
Huiyang Palm Island Resort will be one of the properties that changes hands under the deal. Photo: New World China Land
Huiyang Palm Island Resort will be one of the properties that changes hands under the deal. Photo: New World China Land

Evergrande buys properties from New World China Land

Evergrande Real Estate Group Ltd. (03333.HK) has agreed to buy 13.5 billion yuan (US$2.11 billion) worth of mainland properties from New World China Land Ltd. (00917.HK).

The deal involves 60 percent of Wuhan Changqing Garden in Hubei province and all of Haikou New World Meilisha in Hainan province and Huiyang Palm Island Resort in Guangdong.

Hong Kong-based New World China said it will realize a one-time profit of about 5.4 billion yuan from the transaction with Guangzhou-based Evergrande, China’s second-largest developer by sales.

The firm said the deal is part of its strategy of focusing its resources in first-tier and “1.5-tier” cities while reducing its investment in second-tier and other cities and projects with lower gross profit margins.

The transaction is expected to be completed early next month.

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