KWG Group (HKG:1813) will sell its 33.34% indirect interest in Guangzhou Fujing Real Estate Development to a unit of Sun Hung Kai Properties (HKG:0016), according to a Wednesday filing with the Hong Kong bourse.
Guangzhou Fujing Real Estate holds and operates the large-scale International Grand City mall in Guangzhou.
Fujing Real Estate posted after-tax losses of 1.13 billion yuan and 1.53 billion yuan in 2024 and 2025, respectively.
KWG Group said it was exiting the investment for 160 million yuan due to Fujing Real Estate's current financial conditions and outstanding tax issues.
The firm expects to record a gain of 146.5 million yuan on the sale and overall proceeds will be used for general corporate purposes and its own debt restructuring.
KWG's shares fell nearly 7%, while Sun Hung Kai slipped almost 2% in recent trade.