By Chester Yung

HONG KONG--China Evergrande Group (3333.HK) said Wednesday its unit China Calxon Group Co. Ltd. (000918.SZ) agreed to sell a real-estate firm in Qingdao to Sunac China Holdings Ltd. (1918.HK) for 3.66 billion yuan (US$530 million), in a bid to boost its capital reserve.

The Hong Kong-listed developer Evergrande said it expects to book a pre-tax gain of CNY2.79 billion from the disposal of Qingdao Calxon Real Estate Development Co. Ltd. and will use the proceeds as general working capital for Calxon Group.

In a separate statement, Evergrande said it acquired a total of 509.8 million A shares of China Vanke Co. Ltd. (000002.SZ) between Nov. 18 to Nov. 29 for CNY36.27 billion. After the share acquisition, Evergrande holds a 14.07% stake in Vanke, it said.

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(END) Dow Jones Newswires

November 29, 2016 19:52 ET (00:52 GMT)

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