SRE Group said on Monday it had sold its 51% stake in a unit developing a real estate project in Shanghai for an enterprise value of 3.41 billion yuan ($472 million).
The company is selling its stake in Shanghai Jinxin Property to a China-based real estate developer Zhongchong Investment Group, it said in a statement.
Shanghai Jinxin is primarily engaged in developing the Shanghai Daxing Road Project with luxurious residences and commercial properties among others in the Huangpu District in Shanghai.
The deal gives Zhongcheng Investment total indirect control over Shanghai Jinxin as it already owns the remaining stake through its majority-owned subsidiary.
SRE Group expects net proceeds of 3.374 billion yuan from the stake sale that will be used to repay its outstanding loans.
It expects a net gain of 74.5 million yuan from the divestment.
