Struggling property developer Sunac China agreed to sell nearly 90% of its interest in one of its most valuable projects in Shanghai to two state-owned investors, reports Caixin.
Sunac sold a 64.7% stake in its Oceanwide Construction Holdings unit, which owns the Dongjiadu project in Shanghai, to a unit of China Huarong Asset Management for RMB 5.82 billion ($826 million). It also sold 25% of the subsidiary to Citic Trust for RMB 2.25 billion, business registration information showed.
After the sale, Sunac China retains a 10.3% stake in Oceanwide. Sunac China acquired Oceanwide for RMB 12.55 billion in 2019 after the developer hit a cash crunch. In addition to the Dongjiadu development, Oceanwide owns the Beijing Oceanwide International Project Land Lot 1.