(Yicai Global) Nov. 9 -- The property services unit of Chinese real estate developer Sunac China Holdings plans to raise between USD1.1 billion and USD1.3 billion in an initial public offering in Hong Kong this month.

Sunac Service said four cornerstone investors -- Tencent Holdings, IDG Capital, Hillhouse Capital Group and Snow Lake Capital -- have subscribed for shares worth USD150 million, USD100 million, USD60 million and USD60 million, respectively.

Sixty-five percent of the funds raised will be used to invest in or acquire companies related to residential community management, the Tianjin-based subsidiary said in a statement today. About 15 percent will go to upgrade its smart management and service systems.

Revenue at Sunac Service rose to CNY1.8 billion (USD271.6 million) as of June 30 from about CNY1.1 billion in 2017, while full-year profit jumped to CNY269 million (USD40.8 million) last year from CNY43 million (USD6.5 million) in 2017, increasing at a compound annual rate of 151 percent. 

The total area of land reserves held by Sunac China Holdings exceeded 256 million square meters as of Aug. 25, and a large amount of property is expected to be completed in the next few years. Sunac Service’s contracted building area tallied about 247 million square meters by Sept. 30, with 1,284 projects in total. 

The firm aims to debut on the Hong Kong Stock Exchange on Nov. 19.

Editor: Tom Litting