(Yicai Global) Sept. 29 -- Chinese real estate giant Country Garden said it will pay as much as CNY3.3 billion (USD512 million) to acquire the core assets of property manager Colour Life Services Group.

Listed arm Country Garden Services Holdings will acquire all of Colour Life affiliate Linlile Holding Group, which owns Wanxiangmei Property Management and the property management business in Changbaishan International Resort, Country Garden said in a statement late yesterday.

Linlile had after-tax net profit of CNY309 million (USD47.8 million) last year, accounting for 57 percent of Colour Life’s net profit, Foshan-based Country Garden said.

Shares of Country Garden Services [HKG:6098] closed up 3.3 percent today at HKD58.05 (USD7.46), giving it a market cap of HKD186.76 billion (USD23.99 billion).

Country Garden spun off its property management unit for listing in Hong Kong in 2018. The developer has since been on a buying spree to expand Country Garden Services, including an announcement this month to buy the property manager under real estate giant R&F Group for up to CNY10 billion (USD1.55 billion). It also spent CNY4.8 billion to buy a majority stake in Languang Justbon Services Group at the start of this year.

Trading in Shenzhen-based Colour Life [HKG:1778] was halted today. The stock ended yesterday at HKD2.53 (33 US cents), giving it a market value of HKD3.8 billion.

Country Garden Services had revenue of CNY11.6 billion in the first half of this year, the highest among property managers in China, along with net profit of CNY2.2 billion, according to its latest earnings report. The firm said it targets annual revenue of CNY100 billion (USD15.5 billion) by 2025. 

Editor: Tom Litting