The identities of the potential buyers have been revealed. In the past week, news regarding the equity transaction of Evergrande Property Services has become more frequent. On February 2, media reports indicated that PAG and Guangdong Tourism Holdings Group Co., Ltd. have approached the liquidators of China Evergrande, expressing interest in acquiring a stake in Evergrande Property Services. A few days prior, market rumors suggested that Trustar Capital, under the umbrella of CITIC Capital, is also a potential bidder for Evergrande Property Services. On February 3, when contacted for comment on the acquisition news, a representative from PAG declined to provide any statement. Inquiries were also sent to Trustar Capital, Guangdong Tourism Holdings Group, and the liquidators of China Evergrande, but no responses were received by the time of publication. Evergrande Property Services stated that all information should be based on official announcements.
Bidders have commenced their due diligence processes. Following China Evergrande's entry into liquidation, the disposition of its core asset, Evergrande Property Services, has been prioritized. On September 11, 2025, Evergrande Property Services announced that the liquidators of China Evergrande were actively seeking opportunities to sell the 51% stake held by China Evergrande and CEG Holdings. The day before the announcement, the company received a communication from the liquidators indicating they had signed confidentiality agreements with interested parties and received non-binding indicative offers from some. The liquidators planned to invite selected parties to submit final proposals around November 2025 to negotiate the terms of a definitive transaction agreement. Subsequently, Evergrande Property Services has provided monthly updates on the transaction's progress. According to a January 13, 2026 announcement, the liquidators have invited selected bidders to conduct further due diligence on the company, which is currently underway. Furthermore, the liquidators requested these bidders to submit updated offer proposals by the end of January and stated they do not intend to consider any new non-binding expressions of interest. The announcement emphasized that no formal or legally binding agreements have been reached, and the timing for executing any transaction documents remains undetermined. During this period, there has been considerable market speculation about which companies are interested in bidding. Shortly after the initial announcement, rumors surfaced that China Overseas Land & Investment and China Resources Land were potential participants, but China Overseas Land & Investment quickly stated it was unaware of the situation, and China Resources Land directly refuted the claim as "untrue." By the end of January 2026, further reports indicated that potential bidders included the private equity firm Trustar Capital and at least one state-owned enterprise from Guangdong, with the relevant entities currently evaluating and advancing acquisition plans. Trustar Capital is the private equity division of CITIC Capital, focusing on investments in leading companies within their sectors; it has completed over 100 investments to date, with total assets under management reaching $10.2 billion. The firm is familiar with the property management industry, having invested in seven facility management enterprises through acquisitions since 2018, ultimately forming a platform company called Jiaxin Liheng. Reportedly, Jiaxin Liheng has become a top-tier independent integrated facility management (IFM) enterprise in China specializing in zero-carbon solutions, managing an area of 180 million square meters and serving a cumulative total of 2,700 clients. On January 23, Trustar Capital announced its participation in a major asset restructuring of the A-share listed property firm New DaZheng, agreeing to sell its 75.1521% stake in Jiaxin Liheng for 917 million yuan; upon completion, Trustar Capital will hold approximately 14.92% of New DaZheng. Despite possessing substantial capital and relevant experience, Trustar Capital has not publicly confirmed its participation in the bidding for Evergrande Property Services. According to investors in Evergrande Property Services, industry whispers at the end of January suggested PAG was one of the bidders. This information now appears to be relatively credible.
Two potential acquirers have now come to light. The two buyers that have emerged are leaders in their respective fields. PAG is a well-known global private equity firm, with public information showing it manages over $55 billion in assets for nearly 300 institutional investors worldwide. In the real estate sector, PAG's most notable activity has been its multiple rounds of investment in Zhuhai Wanda Commercial Management. As early as 2021, when Zhuhai Wanda Commercial Management was seeking a Hong Kong listing, PAG, together with 21 other investors, injected approximately HK$46.8 billion into the company. After the IPO plan failed, PAG joined other institutions in 2024 to invest another 60 billion yuan to establish Dalian New Dameng. In 2025, PAG continued its support by partnering with new investors to acquire 100% ownership of 48 Wanda Plazas from the company, in a deal estimated to be worth around 50 billion yuan. Guangdong Tourism Holdings Group is the only provincial-level enterprise in Guangdong primarily focused on tourism and one of China's largest comprehensive tourism groups. The company possesses a full tourism industry matrix covering six segments: hotel investment and operation, travel agency and related businesses, commercial properties and amusement parks, planning and design, scenic spots, and cultural tourism media. Its hotel assets constitute about 70% of the company's portfolio, including properties like the White Swan Hotel, Baiyun Hotel, and Asia International Hotel. Guangdong Tourism Holdings Group also has a presence in commercial property, albeit on a small scale. Although its White Swan Real Estate Development Company was established 39 years ago, it has developed very few properties, such as Tian'e Huayuan and Guangzhou White Swan Garden. Its property management operations are handled by Guangdong White Swan Property Management Co., Ltd., which reported revenue of approximately 12.229 million yuan and a net profit of 779,700 yuan in 2024, classifying it as a small-scale property management enterprise. Financial data shows that as of the end of September 2025, Guangdong Tourism Holdings Group had total assets of about 14.7 billion yuan, with cash and cash equivalents of approximately 2.03 billion yuan. For the first three quarters of 2025, the company generated revenue of around 2.89 billion yuan and a net profit attributable to the parent company of about 108 million yuan. Both its revenue and profit scales are smaller than those of Evergrande Property Services. In the first half of 2025, Evergrande Property Services reported revenue of approximately 6.647 billion yuan, a 6.9% year-on-year increase, and a net profit attributable to shareholders of about 472 million yuan, down 6% year-on-year, ranking 7th in the industry. As of June 30, 2025, the company's total gross floor area under management was about 596 million square meters, placing it among the top three in the sector. To date, the liquidators of China Evergrande have not disclosed the number of bidders participating in the auction for Evergrande Property Services or their respective offer prices. As of February 3, Evergrande Property Services' stock closed at HK$1.13, giving it a total market capitalization of approximately HK$12.2 billion and a static price-to-earnings ratio of about 11 times. There is considerable discussion within the industry regarding the company's valuation; some investors suggest that due to the negative impact from its affiliated parties, it may be difficult to transfer the stake at the current valuation. Others believe that the liquidators' decision not to consider new non-binding offers indicates satisfaction with the existing proposals and transaction terms. Judging by the stock performance of Evergrande Property Services from February 2 to February 4, the emergence of new buyers has not caused significant waves in the capital markets, as investors continue to await a final resolution.
Comments