(Yicai Global) Nov. 24 -- China Resources Land has become the latest major property developer to spin off its lucrative property management arm for a separate listing on the Hong Kong stock exchange as China’s real estate titans look for ways to reduce their debt levels.

China Resources Mixc Lifestyle Services is hoping to raise USD1.6 million in its initial public offering next month, the company told Yicai Global today. It follows Sunac Services Holdings, under developer Sunac China Holdings, that raised USD1.2 billion on its debut on the Hong Kong bourse on Nov. 19. And also China Evergrande Group's property services unit which is eyeing a USD2 billion listing in Hong Kong next week.

CR Mixc, which manages over 107 million square meters of residential and commercial properties and 5.6 million square meters of shopping malls in 62 cities nationwide, plans to issue 550 million shares prices at between HKD18.60 (USD2.40) and HKD22.30, Shenzhen-based CR Land said yesterday.

CR Land’s shareholders can subscribe for one CR Mixc share for every 130 shares they hold in the parent firm, it added.

The IPO comes at a time when Chinese developers are under great pressure from regulators to reduce their debt levels. While the real estate market remains depressed post-Covid-19, the property management sector has been going from strength to strength. Revenue at the property services arm of Guangdong-based developer Country Garden doubled last year and it was the first company to reach a market capitalization of more than HKD100 billion (USD12.9 billion) on the Hong Kong bourse.

CR Land’s stock price [HKG:1109] remained unmoved today, closing at HKD34.7 per share and giving the company a market valuation of HKD247.4 billion (USD31.9 billion).

Editors: Dou Shicong, Kim Taylor