State-owned developer Beijing Huarong Investment plans to sell two office blocks in Beijing for 800 million yuan to a foreign investment fund, after the saleof its Xihuan Plaza shopping mall to an Asian investment fund. 'Foreign investment funds, including Citibank and Merrill Lynch, were looking for property investments in Beijing a few years ago,' said Beijing Huarong Investment vice-president Ju Jing. 'Investment properties in Beijing provide a rental yield of more than 7 per cent and with the potential growth in value, they are attractive to investment funds. At the same time, office prices are stable because of a large amount of new supply.' The group's Xihuan Plaza development, located in northwest Beijing, comprises three office blocks and a shopping mall. 'We sold the shopping mall to an Asian investment fund which will be identified in May. The two office blocks are under negotiation with a foreign investment fund,' Mr Ju said. He believes the two office blocks, with a total gross floor area of 538,200 square feet, will be valued at 800 million yuan or 1,522 yuan per square foot. Beijing Huarong is focusing on commercial developments and plans to launch a real estate investment trust worth 800 million yuan to one billion yuan. The developer plans to unveil three Beijing projects in Hong Kong including Wonderful Mansion comprising 17 residential blocks with 145 units at a total investment cost of 600 million yuan.