Evergrande Liquidators Hire UBS, Citic for $1.1 Billion Unit Sale

China Evergrande Group's liquidators have hired UBS and Citic to sell a $1.1 billion property management unit, Evergrande Property Services Group Ltd. The unit plays a key role in asset recovery for creditors and has been given priority attention. The sale faces hurdles, including plummeting share prices and the liquidation of the parent company. The developer is scheduled to be delisted on Aug. 25 after its shares were suspended for a year and a half. Evergrande is facing 187 debt claims amounting to about $45 billion.

In a significant development in the ongoing liquidation of China Evergrande Group, the company's liquidators have hired investment banks UBS Group AG and Citic Securities Co. to sell Evergrande Property Services Group Ltd., a property management unit valued at HK$9 billion ($1.1 billion) [2]. This move comes amidst the broader property debt crisis that has been unfolding in China since 2021.

The property management unit, which plays a crucial role in asset recovery for creditors, has been given priority attention by the liquidators. It reported a net income of 1 billion yuan in 2024, with 3,000 projects under its operations [2]. Despite its substantial value, the sale faces significant hurdles, including the plummeting share prices and the ongoing liquidation of the parent company.

Evergrande Property Services Group Ltd. has seen its shares drop by approximately 96% from their peak in 2021, trading as a penny stock for several years [2]. The liquidation of the parent company has also negatively impacted the unit's brand perception, market expansion, and project operations.

The developer, China Evergrande Group, is scheduled to be delisted from the Hong Kong stock exchange on Aug. 25, following a year and a half of share suspension due to a winding-up order from a Hong Kong court [1]. The company is currently facing 187 debt claims amounting to about $45 billion [2].

The liquidators, Edward Middleton and Tiffany Wong, have assumed control of over 100 companies related to Evergrande, collectively valued at HK$27 billion [2]. Realization of assets has so far been "modest," with only $255 million recovered, much of which is linked to Evergrande [2].

The sale of Evergrande Property Services Group Ltd. is a critical step in the liquidation process, aimed at maximizing recovery for creditors. However, the complex ownership structures of the assets and the ongoing challenges in the broader property market present significant obstacles.

References:
[1] https://www.cnn.com/2025/08/12/business/china-evergrande-delist-intl-hnk
[2] https://www.bloomberg.com/news/articles/2025-08-13/evergrande-liquidators-hire-ubs-citic-to-sell-1-1-billion-unit