CHINA Vanke Co., the country’s largest developer by market capitalization, is considering a Hong Kong listing of its property management business, according to sources with knowledge of the matter.

The Shenzhen-based company has discussed with potential advisers a share sale that could raise as much as US$1 billion, one of the sources said. The offering could happen next year, said the sources.

Vanke would join other Chinese developers such as Country Garden Holdings Co. in spinning off their management units, which are less prone to government policy changes and economic cycles. Country Garden Services Holdings Co. was listed by introduction last year, while China Aoyuan Group Ltd.’s services arm raised US$94 million in a Hong Kong initial public offering last month.

Deliberations are at early stage, and details including the fundraising size and timeline could change, according to the sources. A representative for China Vanke didn’t respond to requests for comment, while a representative for the property management unit said they have no current plans for a listing.

Property management and related services were China Vanke’s second-largest revenue generator after property sale. The business contributed 9.8 billion yuan (US$1.5 billion), equivalent to about 3.3 percent of the developer’s total revenue last year, according to its annual report. (SD-Agencies)