Jun. 16, 2009 (China Knowledge) - Shanghai Industrial Holdings Ltd< 0363>, which is engaged in the real estate development, infrastructure, medicine and consumer products businesses, on Jun. 11 announced that it has agreed to purchase one of Glorious Property's high-end residential property projects for RMB 2 billion, sources reported.

According to the agreement signed by the two property firms, a wholly-owned subsidiary of Glorious Property will be in charge of developing, selling and operating the residential property project. Glorious Property will have the option to repurchase the project at the end of 2011 through the subsidiary.

Shanghai Industrial expects to reap RMB 900 million from the project in the next three years.

The residential property project, which is located in Xuhui District of Shanghai and is near the site for the 2010 Shanghai Expo, will include four blocks with 396 units involving a potential floor area of 104,000 square meters (sq m).

Last June, Glorious Property planned to raise up to US$1.1 billion through an initial public offering (IPO), but failed. The real estate developer is reportedly restarting the IPO plan.