(Yicai Global) Dec. 5 -- Yonghui Superstores, a major Chinese retail chain backed by Tencent, will pay CNY3.5 billion (USD512 million) for a 1.5 percent share in the commercial arm of Wanda, one of the country's biggest real estate developers.

Yonghui will pay cash in two installments to pick up shares in Dalian-based Wanda Commercial Management Group held by Yifang Group at a price of CNY52 (USD7.6) each, the Fuzhou-based retail chain said in a statement.

Tencent holds a 5 percent stake in Yonghui and a 15 percent stake in its Super Species fresh produce retail chain.

The use of cash for the deal will increase lending expenses, with the payment expected to accrue 6 percent in interest annually or CNY210 million (USD30.7 million). Profit is estimated to fall 10 percent as a result, the firm said.

Wanda Commercial Management Group, formerly Wanda Commercial Properties, is a real estate platform under Wanda Group, whose actual controller is Wang Jianlin, one of China's richest people.

Wanda Commercial has been preparing for an initial public offering on the country's A-share market for over three years since submitting a prospectus to regulators in September 2015 and it delisted from the Hong Kong bourse in September 2016.

Tencent Holdings, Suning, JD.Com, and Sunac China Holdings have put in around CNY34 billion to acquire a combined 14 percent share following the H-share delisting. The firm changed its name to Wanda Commercial Management Group in March.

Wanda Commercial posted revenues of CNY132.1 billion, CNY129.9 billion, CNY135.6 billion, and CNY51.8 billion, respectively, in the years 2015 to 2017 and in the first half of this year. Net profits have been CNY30.1 billion, CNY32.9 billion, CNY21.9 billion, and CNY15.8 billion over the same period. The company's assets amounted CNY633.9 billion as of the end of the first half, with net assets valued at CNY254 billion.

Editor: William Clegg