China Cinda Asset Management Co. has agreed to buy a Beijing property from GuocoLand Ltd. for 10.5 billion yuan ($1.6 billion).
The real estate development project is located in the city’s Dongcheng district and comprises shopping centers, an office building with twin towers, apartments and hotels, China Cinda said in a statement to the Hong Kong stock exchange. The development has a planned gross floor area of 510,000 square meters.
Cinda will pay 4.56 billion yuan for the project rights and take on 5.94 billion yuan in liabilities. GuocoLand is owned by Guoco Group, a Hong Kong-listed company.
Cinda fell 1.8 percent to HK$3.27 before the announcement. The stock has dropped 13 percent this year, compared with a 3.6 percent decline for Hong Kong’s Hang Seng Index.