China Evergrande's Unit Hengda Real Estate Raising CNY39.5 Billion

By Joanne Chiu Features Dow Jones Newswires

China Evergrande Group's (3333.HK) unit Hengda Real Estate Group Co. is seeking to raise 39.5 billion yuan ($5.79 billion) from more than a dozen investors to boost its capital.

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China Evergrande, which in January agreed to sell a 13.2% stake in Hengda Real Estate to eight investors for around CNY30 billion, said Thursday that Hengda Real Estate is raising another round of funds from 13 investors, which include Shenzhen Investment Ltd. (0604.HK), Shenzhen Baoxin Investment Co. and Jiangxi Huada Property Group Co.

The fundraising plan comes as the Hong Kong-listed Chinese real-estate developer is mulling a backdoor listing of its property assets through a proposed reorganization of Hengda Real Estate with Shenzhen-listed Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. (000029.SZ) to take advantage of higher valuations in Chinese stock markets.

China Evergrande's stake in Hengda Real Estate will fall to 73.9% from 86.8% currently, it added.

-- Write to Joanne Chiu at joanne.chiu@wsj.com

(END) Dow Jones Newswires

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May 31, 2017 20:49 ET (00:49 GMT)