PAG enters exclusive negotiations to buy majority of Evergrande Property Services

PAG, an investment firm that specializes in Chinese property management, has obtained exclusive rights to negotiate for a majority interest in Evergrande Property Services, the services subsidiary of the heavily indebted China Evergrande Group. The exclusivity agreement, confirmed by Evergrande Property Services on September 30, does not name the bidder, but two insiders identify PAG as the party. Liquidators aim to sell the 51.02% stake to recoup claims totaling about US$45 billion, yet the broader liquidation has moved slowly, with only US$255 million of assets sold to date.

The property-services unit is currently valued at just under US$1.6 billion and its stock has fallen 87% since its 2020 listing. The exclusive negotiation window expires on October 27, and no financial details of PAG’s prospective bid have been released. Both Evergrande Group and its property-services arm declined to comment, and PAG also declined to speak on the matter.