JLL China Unit Sale Draws Country Garden, Sunac Arms
(Bloomberg) -- Jones Lang LaSalle Inc.’s property management business in China has attracted prospective suitors including Country Garden Services Holdings Co. as the U.S. firm is seeking more than $500 million in a sale, according to people familiar with the matter.
The property management arm of Chinese developer Country Garden Holdings Co. is working with an adviser to evaluate a potential offer, said the people, who asked not to be identified as the information is private. China Resources Mixc Lifestyle Services Ltd. and Sunac Services Holdings Ltd. have also shown interest in the asset, the people said.
JLL is pursuing a potential divestment of its property management business in China, Bloomberg News reported last month. A sale could also coincide with more Chinese developers’ property management units looking to list in Hong Kong, as they aim to capitalize investor enthusiasm for a sector that’s less vulnerable to government policy changes and economic cycles than real estate development itself.
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Deliberations are ongoing and companies might not proceed with any bids for the JLL unit, the people said. Representatives for JLL and Sunac Services declined to comment, while representatives for Country Garden Services and China Resources Mixc didn’t immediately respond to requests for comment.
The Chicago-based real estate services firm operates in more than 80 countries and employs about 91,000 people, according to its 2020 annual report. The firm reported $16.6 billion revenue in 2020, of which 58% came from property and facility management services, according to the report.
JLL generated $3.1 billion in revenue from providing real estate services in Asia Pacific, of which 32% came from the Greater China region, according to the report.
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