UPDATE 1-Evergrande explores $400 mln placement after failed IPO

(Adds expected size, timing of deal)

HONG KONG, March 31 (Reuters) - Chinese property developer Evergrande Real Estate Group Ltd is exploring a $400 million to $500 million private placement after it ditched its IPO plans, a source familiar with the matter said on Monday.

The company hoped to price the offering in the next few weeks, said the source, who did not want to be identified.

Investment banks Credit Suisse (CSGN.VX), Goldman Sachs (GS.N) and Merrill Lynch MER.N -- the same firms hired for the IPO -- are running the placement, the source said.

Evergrande's pursuit of a private cash injection comes as property developers face a tight financing market, with the credit crunch making banks less willing to loan money to builders.

Evergrande had planned to raise up to $2.1 billion in a Hong Kong IPO, but scrapped the offer this month due to weak investor interest.

The company faces an uphill battle after once-hot Chinese property stocks have fallen deeply out of favour amid Beijing's numerous efforts to cool the property market and stave off inflation.

The South China Morning Post was first to report the new offering.

(Reporting by Michael Flaherty; Editing by Anne Marie Roantree)