MIPIM 2016: China Overseas Land & Investment is to buy the Chinese residential assets of Citic for $4.8bn (£3.3bn).
The projects being sold by the state-owned group span 25 cities and total 258m sq ft of undeveloped land.
The deal will see Citic concentrate on only commercial development and restructure all of its property assets into a single subsidiary.
COLI will sell a 10% stake in the company to Citic as part of the deal and Citic will also receive a commercial property portfolio worth almost $1bn.
Meanwhile, China Vanke has said it is acquiring a stake worth $6.2bn-$9.3bn in China’s largest house builder, Shenzhen Metro.
Vanke is currently in the midst of a shareholder battle to control the company, with insurer Baoneng Group having steadily built a stake.