Canada’s Brookfield Asset Management is buying a commercial property complex, still under development in Shanghai, for more than US$2bn (€1.78bn) from Greenland Group.

Listed property developer Greenland said it had reached an agreement, subject to shareholder approval, with Brookfield to sell three office towers and a retail mall at Greenland Huangpu Centre (GHC).

The Chinese company said the parties had agreed on the gross asset value of the property of RMB10.57bn (€1.4bn) and the projected construction cost of RMB3.3bn.

Three office blocks are due for completion this quarter and occupancy is expected in October with a mid- to high-end lifestyle retail centre due to open in mid-2020. The complex offers a total net lettable area of almost 1.7m sqft.

Stuart Mercier, senior vice president and head of Asia (real estate), Brookfield, said: “This acquisition reinforces Brookfield’s long-term commitment to the China market through our continued contribution to industry-leading portfolio management and development capabilities.

“We look forward to working towards completing GHC and having it become a landmark property on the iconic Huangpu Riverbank.”

The transaction ranks as one of the largest commercial deals so far by a foreign investor in China.

The last major transaction was in November 2018 when Shanghai’s tallest twin towers, in North Bund were acquired by Singapore’s CapitaLand and sovereign wealth fund GIC for US$1.9bn.

Brookfield first entered the Chinese market in 2013 when it bought into Shui On Land’s Xintiandi entertainment complex in Shanghai for up to US$750m.

Brookfield’s current real estate presence in China is made up of The Mall Jinqiao and The Mall Nanxiang, both located in Shanghai, and the Walmart Dongguan Perishable Distribution Centre in southern China.