* Sunac may buy as much as 30 pct for up to $645 million
* Move would boost its position in luxury real estate market
* Consolidation expected in China's property sector this
(Adds details about the companies, sector)
By Clare Jim
HONG KONG, May 16 Sunac China Holdings Limited
is in talks to buy up to 30 percent of fellow property
developer Greentown China Holding Ltd, a move that
would boost its position in the country's luxury real estate
The deal would be worth as much as HK$5 billion ($645
million) based on Greentown's last closing price, and it would
make Sunac the largest shareholder in Greentown, which is based
in the eastern city of Hangzhou.
China's overheated property market is facing tight liquidity
and developers and industry observers expect consolidation in
the sector this year.
Greentown said that while the two companies were in
discussions, it had not yet received a formal offer. It is
China's eighth largest developer by sales so far this year,
while Sunac is the ninth.
Shares of Greentown rose 6 percent as of 0309 GMT, while
shares of Sunac shed 5.3 percent. The Hang Seng Index
declined 0.7 percent.
Suffering from financial woes two years ago, Greentown sold
some projects in China to Sunac for HK$3.37 billion. It also
sold shares and perpetual subordinated convertible securities to
Hong Kong's Wharf Holdings Ltd for HK$5.1 billion.
Wharf now holds 24.3 percent of Greentown.
($1 = 7.7519 Hong Kong Dollars)
(Reporting by Clare Jim; Editing by Edwina Gibbs)