(Yicai Global) Jan. 21 -- A unit of Chinese developer Sunac China Holdings will acquire projects in Beijing and Shanghai for CNY9,682 (USD1,426) per square meter, which is well under the market average.

Sunac Real Estate Investment Holdings will secure the projects by buying Beijing-based China Oceanwide Holdings from Oceanwide Construction Holdings for CNY12.6 billion (USD1.9 billion), it said yesterday. 

The purchase will further increase Sunac Real Estate's quality land reserves and market share in downtown Beijing and Shanghai and further cement its leading position and brand influence in first-tier cities, it added. The deal may also optimize the target's positioning and asset-liability structures, Oceanwide said in a separate statement.

The Beijing plot, which has just broken ground, is in the core of eastern Chaoyang district and has a gross floor area of about 668,500 sqm, per a filing with the Hong Kong Stock Exchange. The partially built Shanghai project is in the center of Huangpu district, adjacent to the historic riverside Bund area, and covers about 120,300 square meters.

Shares of Sunac [HKG:1918] rose 0.2 percent today to close at HKD26.40 (USD3.36), while Oceanwide [SHE:000046] gained 0.4 percent to CNY5.02 (74 US cents).

Editor: Ben Armour