Chinese developer sells property assets for $789m

China-owned property developer Shenzhen Investment Limited has sold four property and hotel assets to China Evergrande Group in a $789 million deal, unloading projects in third- and fourth-tier cities to enhance its financial position.

It will transfer its equity interests in four companies, which include Sanshui Property, Sanshui Hotel, Pengji Assets Management Company, and Sanshui Investment, plus interest on shareholders’ loans. The Chinese developer said it would book a HK$2.9 billion ($372 million) gain from the sale to Evergrande’s Hengda Real Estate Group.

Shares of Shenzhen Investment rose to a five-week high before paring gains to be up 0.6 percent and in line with the broader market. Evergrande’s stock reached as high as 6.9 percent.