(Yicai Global) Oct. 13 -- Shanghai Lujiazui Finance & Trade Zone Development Co. [SHA:600633] has proposed to sell a 51 percent stake in its subsidiary, Shanghai Jiashou Real Estate Development Co., whose assets mainly comprise properties in the Standard Chartered building in Lujiazui Financial City. The deal will help the company improve cash flow and asset allocations.

The share sale is worth about USD201 million (CNY1.33 billion), and Jiashou Real Estate Development owns more than 86 percent of the total floor area in the building, Lujiazui Finance & Trade Zone Development said in a statement released via the Shanghai Stock Exchange yesterday.

Its 51 percent holding makes it the largest shareholder in Jiashou. Shanghai Life Insurance Co., owner of the remaining 49 percent, has not waived its right of first refusal for the share sale.

Jiashou Real Estate Development logged operating income of CNY55.95 million and net profit of CNY35.82 million in the first half. It will drop off Lujiazui Finance & Trade Zone Development's consolidated financial statements following the deal, which will will translate into a gain in net profits of CNY895 million for the latter.

The share sale will positively impact the company's earnings and help rationalize asset allocation and improve its cash flow, per the statement.