A unit of Chinese property developer Sino-Ocean Group Holding Ltd. agreed to sell, for the U.S.-dollar equivalent of approximately 5.38 billion yuan, its entire stake in Cityshine Holdings Ltd., which mainly owns an indirect 94.03% equity interest in a company that holds the Ocean Office Park office building in Beijing.

The buyer is Harbour Link Ventures Ltd., which will acquire the Cityshine Holdings stake from Fast Fame Capital Investment Ltd. Cityshine Holdings holds a 94.03% stake in Beijing Longzeyuan Real Estate Co. Ltd., which holds the Beijing project.

The sale deal follows a Dec. 21 joint venture agreement between Sino-Ocean unit New Shine Global Ltd., Ever Sail International Ltd. and SOL Property Fund GP II Ltd. for the management of and the investment in SOL Property Fund III LP, which was set up with a view to acquiring Beijing Longzeyuan.

Under the deal terms, New Shine Global and Ever Sail will each contribute the U.S. dollar equivalent of 900.0 million yuan to SOL Property Fund III.

Ever Sail International is a wholly owned subsidiary of ICBC International Investment Management Ltd. SOL Property Fund GP II is a joint venture of Sino-Ocean that is 50%-owned by Sino-Ocean unit Southern Victory Holdings Ltd., with ICBC International unit Century Gate Investments Ltd. holding the remaining half stake.

Southern Victory, Century Gate and SOL Property Fund GP II also agreed upon, among other things, the operation and management of the property fund group.

Sino-Ocean said it aims to increase the group's investment returns and valuation via the property fund investment and property sale, while at the same time, being able to retain an indirect significant stake in Cityshine Holdings.

The group aims to use the net sale proceeds of about 5.38 billion yuan as general working capital. The company estimates unaudited pretax gain from the sale at nearly 1.80 billion yuan.

As of Dec. 21, US$1 was equivalent to 6.91 yuan.