China Real Estate Site SouFun Gets New Investment

SouFun Holdings, operator of China’s biggest real estate portal and known as Fang.com in China, has secured $400 million to $700 million from private-equity firms IDG Capital and Carlyle Group, together with the company’s CEO Vincent Mo.

The subscription price of the newly issued shares is $5.85 per American depositary share, two cents below where U.S.-listed shares closed Thursday and well off the $19.94 lifetime high hit during China’s real estate boom.

For IDG, the investment adds to the firm’s 2.8% stake.

Mr. Mo said the Beijing company, in the midst of a revamp, will use the funds to “expand aggressively to more cities and rapidly increase its market share in existing cities.” SouFun’s apps and sites include real estate listings covering nearly 400 cities in China.

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