China Vanke, the mainland's biggest listed development company, is expected to acquire Shenzhen International Trust & Investment's real estate assets for 735 million yuan.
The Shenzhen-based developer was the only bidder for the assets when the tender closed earlier this month, according to sources.
'The two parties are in talks about details of the agreement,' said Yang Jian, a spokesman for Winsun Management (Shanghai), the agent appointed to sell the property portfolio.
The asset sale is part of Shenzhen International Trust's restructuring programme after state-owned conglomerate China Resources Group acquired a 51 per cent stake in the firm for 1.74 billion yuan in 2006.
It is also designed to comply with Beijing's policy that trust firms should not be involved in holding real asset investments.
China Vanke company secretary Shirley Xiao Li yesterday confirmed that the company was interested in the assets. 'We have submitted a bid but no formal agreement has been reached so far,' said Ms Xiao.
If the deal does materialise, it will be China Vanke's first property acquisition this year.
