(Yicai Global) Feb. 15 -- A unit of Chinese real estate giant Greenland Holdings will pay CNY12 billion (USD1.8 billion) for a half stake in a large and prestigious Shanghai property development of China Minsheng Investment Group, which is struggling with debts.

Greenland Real Estate Group will purchase the necessary shares and all creditor's rights in China Minsheng Bund Real Estate Development, Shanghai-based Greenland said in a statement yesterday, confirming previous media reports of a deal. The acquisition will help Greenland secure more high-quality land in first-tier cities and hone its competitiveness, it said.

The 1.14 million-square-meter Dongjiadu Financial City project is in the city's Huangpu district and enjoys geographic importance in the historic riverside Bund area. China Minsheng Investment, Shanghai Bund Investment Group and Shanghai Jiadu Properties together spent CNY24.9 billion (USD3.7 billion) for the plot, making it the nation's biggest land deal of 2014.

Anxin Trust and Shanghai Bund Investment will hold 45 percent and 5 percent of the target firm's shares post-acquisition.

Greenland will give full play to its advantages in development, industrial resources and regional positioning and spare no efforts to build a new landmark in Shanghai as an international financial hub, said Chairman and President Zhang Yuliang.

The company will lead the project's development, which is the jewel in the crown of the target firm. Greenland has achieved its positioning in major projects in the eastern megacity's central area and will take this opportunity to further increase its market share and influence in Shanghai and in the surrounding Yangtze River Delta area, it added.

Known as the Chinese Morgan Stanley, Shanghai-based China Minsheng Investment is the country's top private global investment group. Founded in 2014, the group focuses on equity investment, consulting and management as well as asset management. Its current assets total more than CNY300 billion.

It failed to pay CNY3 billion (USD443.3 million) worth of bonds that matured on Jan. 29. After that Shanghai's Financial Court froze its stakes in two real estate firms, including China Minsheng Bund Real Estate, valued at CNY13.2 billion, according to court filings dated Feb. 1.

At the end of December, China Minsheng Bund Real Estate's assets, liabilities and net assets were CNY45.3 billion, CNY35.3 billion and CNY10 billion, respectively, the statement said.

Editor: Ben Armour