(Yicai Global) Nov. 14 -- Chinese retail giant Suning Commerce Group Co Ltd [SHE:002024] intends to sell up to 5.5 million shares in internet behemoth Alibaba Group Holding Ltd. [NYSE:BABA], the firm said in a press briefing at the Shenzhen Stock Exchange yesterday.

Suning will raise about USD1.025 billion in funds through the divestment, based on Alibaba's closing share price of USD186.41 as of the close of trading last Friday.

Upon completion of the sale, the company will still hold 20.82 million shares in Alibaba Group, representing a 0.82 percent stake.

Alibaba subsidiary Taobao China Software Co. subscribed to Suning Commerce's non-public offered shares in 2015, making up a 19.99 percent share of total capital in the firm following the issuance.

Suning also made a strategic investment in Alibaba Group's newly issued shares. through its overseas subsidiary Shiny Lion Ltd. in June 2016. Suning Commerce resultantly subscribed to 26.32 million shares in Alibaba Group, accounting for 1.04 percent of the total share capital at a subscription price of USD81.51 per share.

The retail firm's wholly-owned subsidiary Jiangsu Suning Logistics Co. and Shenzhen Capital Group Co. (SCGC), a limited venture capital company established by Shenzhen Government, intend to jointly establish a logistics real estate fund.

The two parties plan to raise USD758 million (CNY5 billion) during the first phase, mainly for the purchase of storage facilities that Suning has already built, and market-oriented acquisitions, investments and development of qualified high-standard warehousing and logistics facilities.

Suning SCGC Fund Management (Nanjing) Co. will act as the fund manager.