China Fortune Land Development Co. Ltd. agreed to sell its wholly owned subsidiary Beijing Wusheng Technology Co. Ltd., which owns a Beijing commercial property project, to Ping An Life Insurance Co. of China Ltd. for 5.83 billion Chinese yuan.

Under the agreement, Ping An Life will secure a vacant commercial site of 21,103 square meters in the Lize financial business district in Beijing and need to appoint China Fortune Land's subsidiaries to construct and manage the project. China Fortune Land has promised that the post-development expenses will not exceed 1.53 billion yuan.

Ping An Life will pay around 5.39 billion yuan in cash and take on another 442 million in debts. Of the cash payments, 80% will be paid within five days after the State Administration for Market Regulation approves the deal. The remaining 20% will be paid in two phases after the transaction completes.

The deal is part of China Fortune Land's efforts to shift towards an asset-light property developer, the company said.

Ping An Insurance (Group) Co. of China Ltd.'s subsidiary Ping An Asset Management Co. Ltd. increased its stake in the Chinese developer to 25.25% from 19.7% in February, which made it the developer's second largest shareholder.

As of Aug. 16, US$1 was equivalent to 7.04 Chinese yuan.