Shanghai Industrial buys property firm for $754 mln

HONG KONG Aug 17 (Reuters) - Shanghai Industrial Holdings (0363.HK) said it would pay its controlling shareholder 5.13 billion yuan ($754 million) for a 63.65 percent stake in property development firm, Shanghai Industrial Development Co Ltd (600748.SS).

In a filing with the Hong Kong bourse late on Monday, the Chinese conglomerate said the deal with Shanghai Industrial Investment (Holdings) Co Ltd would help it rapidly expand the scope of its investments and strengthen the earnings base of its real estate business.

The deal is subject to approval from the State-owned Assets Administration Commission. The company will fund the deal through a combination of internal resources and bank financing, it added.

The Hong Kong-listed conglomerate said it would own a gross floor area of about 22.18 million square meters of land reserves, including the land reserve of Shanghai Industrial Development, making it one of the top 10 in China's real estate industry.

For statement click here (US$1=HK$7.77) (Reporting by Donny Kwok; Editing by Ken Wills) ($1=6.803 Yuan)