Evergrande Property said to expect binding offers by this month

[HONG KONG] Liquidators of China Evergrande Group are expected to receive binding offers from buyers for the firm’s Hong Kong-listed property management unit as soon as the end of this month, according to people familiar with the matter.

Private equity firms including Trustar Capital are evaluating whether to move ahead with a bid for Evergrande Property Services Group, said the people, who asked not to be named because the matter is private. At least one Guangdong-based state-owned buyer is also considering making a proposal, the people added.

Deliberations are ongoing and the bids might not happen, the people said. Offers are expected to be below the current share price, with a deal possible by the end of the second quarter, they added. 

Trustar Capital and the liquidators declined to comment. 

Evergrande Property Services is playing a crucial role in asset recovery for creditors, who are striving to salvage what remains after the Chinese property giant was liquidated and subsequently delisted from the Hong Kong stock exchange in August. 

Despite its troubled parent, the property services arm carries a market valuation of HK$13.8 billion (S$2.24 billion), though its shares have plunged 93 per cent from their 2021 peak to HK$1.28 as at Tuesday (Jan 27) afternoon in Hong Kong. 

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To unlock value, court-appointed liquidators enlisted UBS Group and Citic Securities to explore potential buyers for the unit, people familiar with the matter said in August.

Operations at Evergrande Property Services remain active. The company reported net income of US$144 million in 2024, and has been overseeing 3,000 projects across China. 

Yet these figures stand against the backdrop of Evergrande’s broader financial collapse. The developer faces 187 debt claims totalling about US$45 billion, with liquidators saying in August that any “holistic” restructuring is out of reach. BLOOMBERG