(Yicai Global) May 11 -- Sino-Ocean Group Holding Ltd., in which Anbang Insurance Group Co. holds a 29.7 percent stake, will acquire 1/2 of Beijing Bangbang Commercial Property Co. (BBCP) from Anbang for CNY0 and dispose of its assets, Sino-Ocean said yesterday.

The Chinese government took over the company in February following the arrest of its founder and former chairman Wu Xiaohui, who was coincidentally sentenced to 18 years in prison for fundraising fraud and embezzling corporate funds and had CNY10.5 billion (USD1.65 billion) of his assets confiscated by a Shanghai court yesterday.

BBCP will become a real estate platform jointly run by Sino-Ocean and Anbang after the deal and will oversee the disposal and operations of Anbang's existing property projects, the announcement said. BBCP will adopt Sino-Ocean's management regime and use its information system.

Sino-Ocean will partner with Anbang and promote cooperation in their respective areas of strengths based on their business needs, including property development, strategic investment, real estate financing, insurance and pensions, the announcement added.

Sino-Ocean's various business units will operate Anbang's existing assets, state news outlet The Paper reported, citing a Sino-Ocean insider. Sino-Ocean Property, Sino-Ocean's residential property arm will only be responsible for residential housing projects among the disposed assets. Sino-Ocean will also take over Anbang's overseas assets, including the Waldorf Astoria Hotel in New York City.

Editor: Ben Armour