Greentown China Holdings Ltd. agreed to purchase a 35% stake in Shanghai Xinhu Real Estate Development Co. Ltd. from Xinhu Zhongbao Co. Ltd. subsidiaries Zhejiang Yunsheng Investment and Xinhu Real Estate Group for 3.60 billion yuan.

The companies also signed a cooperation agreement for the development of the section 4 of phase 3 of the Pearl City Project in Putuo District, Shanghai, with a gross construction area of approximately 202,683.40 square meters. It would involve the development of residential and commercial buildings and basements, according to a Dec. 17 news release.

Following the acquisition's closing, Zhejiang Yunsheng, Greentown China and Xinhu Real Estate will own 50%, 35% and 13% stakes, respectively, in Shanghai Xinhu Real Estate. The remaining 2% stake in the company will be held by Shenzhen Donghaichao Investment Development.

As of Dec. 17, US$1 was equivalent to 7.00 yuan.