Swire Pacific Ltd. unit Swire Properties Ltd. agreed to sell its entire 50% stake in Island Land Development for about HK$2.38 billion.

Gateway Real Estate Fund VI LP agreed to buy the stake in the company that owns a 26-story commercial building at 625 King's Road in North Point, Hong Kong, through Jacko Rise Pte. Ltd. The Gateway fund is managed by real estate investment firm Gaw Capital Partners.

The deal is expected to close by July 19.

The building offers 301,065 square feet of total gross floor area and has an assessed book value of about HK$2.82 billion as of Dec. 31, 2018.

Communication Holdings, a unit of Hong Kong-based real estate company China Motor Bus Co. Ltd., owns the remaining 50% of Island Land Development. The company will also sell its stake to Jacko Rise for the same amount, with the transaction expected to complete simultaneously with the Swire deal.