The board of directors of Shanghai Industrial Urban Development Group Ltd. signed a letter of intent with Shanghai Shangtou Asset Operations Co. Ltd. for the purchase of Shanghai Shangtou Real Estate Investment Co. Ltd.

Shanghai Shangtou is chiefly engaged in secondary land development.

The controlling shareholder of Shanghai Industrial exercises authority as a state-owned shareholder of Shanghai Shangtou.

According to a release, the deal terms are still under discussion and will be set out in the asset and equity transfer agreement.