Date
28 May 2017
Evergrande is boosting its property portfolio by acquiring several mainland China assets of Hong Kong’s New World group. Photo: Bloomberg
Evergrande is boosting its property portfolio by acquiring several mainland China assets of Hong Kong’s New World group. Photo: Bloomberg

Evergrande to buy US$3.2 bln China assets from New World group

Evergrande Real Estate Group has agreed to buy 20.4 billion yuan (US$3.2 billion) worth of property assets in China from firms controlled by Hong Kong tycoon Cheng Yu-tung.

The deal includes a 60 percent stake in a mixed-use development in Sichuan province and a project comprising hotel, residential and office buildings in Guizhou province, Reuters reported.

The two projects will be acquired from New World China Land, a unit of Cheng’s New World group, for 7.3 billion yuan.

Meanwhile, Evergrande will also buy some properties in Shandong province from Cheng’s privately-owned Chow Tai Fook Enterprises and some residential land in Shanghai.

In addition, the mainland developer agreed to acquire a luxury residential project in Beijing from Chow Tai Fook for 7.6 billion yuan, the report said, citing company announcements.

Evergrande will finance the deals through internal resources and proceeds from an issue of perpetual securities to firms including Chow Tai Fook, New World Development and New World China.

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