Yuexiu Property's (HKG:0123) subsidiaries Kingwongs Investment and Guangzhou Huazhen Technology Service agreed to dispose of the entire equity interest of Guangzhou Grandcity Development to Guangzhou Renyao Economic Information Consultancy for 1.09 billion yuan.

The transaction also involves the transfer of certain properties held by the target company, such as office space and car parks at the Guangzhou International Commercial Center in Tianhe District, Guangzhou, a Wednesday Hong Kong bourse filing said.

The purchaser won the tender for the disposal of the target company on GuangDong United Assets and Equity Exchange. The purchaser is a subsidiary of CITIC Securities (HKG:6030, SHA:600030).

CITIC Securities has also appointed Guangzhou Yuexiu Commercial Properties Operation Management to provide operational and management services for the properties for a management fee.

The group expects to gain 876.0 million yuan from the disposal and plans to use the proceeds to develop its core business operations.