Redsun Services acquires 80% equity interest in property management companies

The acquisition by its wholly-owned subsidiary has a consideration of $87.8m (RMB73.54m).

Community services provider Redsun Services has announced that its wholly-owned subsidiary, Hong Life Property Management, has acquired an 80% equity interest in two property management companies in Nanjing for a total consideration of $87.8m (RMB73.54m).

“The acquisition will enable Redsun Services to expand its business scope and coverage, enhance economies of scale for the group’s development in Jiangsu Province, foster the development of its value-added services and other businesses, and in turn, bring new opportunities for the growth of the group,” it said in a press release.

The target companies to be acquired are Gaoli Property and Jiangsu Gaoli Meijia, both of which operate under Gaoli Holdings. They are principally engaged in the provision of property management services in China, with a focus on property services relating to home fittings ports and automobile display venues.

In 2020, the revenue of the target amounted to $42.53m (RMB36.52m) which represented a 33.9% increase.

Upon completion of the acquisition, the Gaoli Property and Jiangsu Gaoli Meijia will become subsidiaries of Redsun Services, and their financial information will be consolidated into the financial statements of the group.