Evergrande Real Estate Group Ltd said on Tuesday it has agreed to buy mainland property assets in cities including Shanghai and Beijing from the empire of Hong Kong tycoon Cheng Yu-tung for 20.4 billion yuan ($3.2 billion). Evergrande will buy a 60 percent stake in a commercial and residential development in Sichuan province and a project comprising hotel, residential and office buildings in Guizhou province from New World China Land Ltd, which is controlled by Cheng, for 7.3 billion yuan.
In a separate statement, Evergrande said it would buy properties and commercial-residential land in Shandong province from Cheng's privately-owned Chow Tai Fook Enterprises for 2 billion yuan and a low-density residential land in Shanghai for 3.5 billion yuan. The mainland developer also agreed to buy a luxury residential project in Beijing from Chow Tai Fook for 7.6 billion yuan.
Evergrande said it would finance the deals through internal resources and with the proceeds from its just completed issue of $1.5 billion perpetual securities to companies including Chow Tai Fook, New World Development and New World China. Shares of Evergrande climbed 1 percent after the deals, outpacing a 0.4 percent gain in the benchmark Hang Seng Index.
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