Tiffany Wong and Edward Simon Middleton, the Alvarez & Marsal Inc. liquidators appointed to wind up China Evergrande Group, have agreed to sell control of its property services arm to PAG for HK$4.03 billion (US$513.6 million).
The sale covers a 51.016 per cent stake in Evergrande Property Services, comprising about 5.52 billion shares held by China Evergrande and CEG Holdings, both of which are in liquidation.
For the liquidators, the transaction turns one of the group’s remaining operating businesses into money for creditors. They are seeking assets for creditors owed US$46 billion.
China Evergrande, described as the world’s most indebted developer, defaulted on offshore debt in 2021. Hong Kong’s High Court ordered the company to wind up in January 2024, appointing the Alvarez & Marsal liquidators.
Asset sales and loan recoveries had brought in US$435.9 million by the time of this deal, less than 1 per cent of the US$46 billion in creditor claims.
Evergrande Property Services was founded in 1997 to provide property management, primarily for developments of Evergrande Real Estate, a China Evergrande subsidiary. China Evergrande listed the business separately on the Hong Kong Stock Exchange on 2 December 2020.
The unit has continued to operate through the parent company’s collapse. At the end of June 2026, it managed 603 million sq meters and held 4.2 billion yuan in cash.
The transaction information gives two sets of first-half 2026 earnings figures. One says the company recorded revenue of 6.94 billion yuan (US$1 billion) and net profit of 503 million yuan. Other figures put first-half revenue at 6.9 billion yuan, up 4.5%, and net profit at 517 million yuan, up 9.5%.
PAG is an Asia-focused offshore private equity firm led by its executive chairman, Shan Weijian, and specialises in large cross-border restructurings and corporate turnarounds.
Once the purchase is completed, PAG will have to make an unconditional mandatory cash offer for the remaining shares at HK$0.8359 each. That price is 29.5 per cent below Evergrande Property Services’ closing price of HK$1.185 on 28 October.
PAG said it planned to keep the company listed in Hong Kong and did not expect major operational changes beyond adjustments at board level.
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