Shougang Fushan Resources (HKG:0639) said an indirect wholly owned subsidiary agreed to acquire a Beijing office property from a unit of its substantial shareholder, Shougang Group, for 530 million yuan, according to a Thursday Hong Kong bourse filing.
The property comprises 22 office units with a total gross floor area of about 21,338 square meters in the Shouyi Development Building within Shougang Park.
The company said the acquisition will support the expansion of its coal trading business, establish a long-term operational base in Beijing, improve capital utilization, and provide long-term investment and leasing opportunities.
The transaction will be funded with internal resources.
Shares of the firm were down nearly 6% in late morning trade on Friday.