(Yicai Global) Jan. 16 -- Yuzhou Properties Co. [HK:1628] plans to acquire part of assets of Hong Kong real estate developer, Coastal Greenland Ltd [HK:1124] to improve the land reserve of the company.

Yuzhou Properties [HKG:1628] and Coastal Greenland [HKG:1124] simultaneously filed trading suspension notices yesterday morning. Coastal Greenland said it would disclose a major disposal transaction, while Yuzhou Properties did not give any reason for it. However, an insider said Yuzhou Properties will be the buyer in what will be the company's largest acquisition.

Founded in Xiamen before moving its headquarters to Shanghai, Yuzhou Properties witnessed the value of its land reserves going up to CNY61.9 billion (USD9.6 billion) last year from CNY23 billion in 2016 due to rapid development. It has raised its 2020 sales target to CNY100 billion.

The land reserve of Coastal Greenland is mainly located in Shanghai, Wuhan, the central Hubei province, and Anshan in the northeastern Liaoning province. The company has been reporting dramatic losses in multiple reporting periods since September 2014, and is said to be preparing to quit the property market. Yuzhou Properties acquired two land parcels of Coastal Greenland in Wuhan for CNY3.6 billion in end-2016.