China Overseas Land & Investment (HKG:0688) said its unit agreed to acquire controlling and associate stakes in two Shanghai property firms holding land plots for the Dong'an Project, according to a Sept. 5 Hong Kong bourse filing.

Shares of the firm were up nearly 1% in Monday morning trade.

CODG, an indirect wholly owned subsidiary, will invest about 7.34 billion yuan for a 50.5% stake and related debt in Shanghai Xin Dong'an Enterprise Development, which will become a subsidiary.

It will also contribute 812 million yuan for a 30.5% interest in Shanghai Xin Bai'an Economics Development, which will be accounted for as an associate.

The acquisitions are part of a 15.5 billion yuan joint purchase with Shanghai Hongrun and Hangzhou Travel Investment.

The target companies hold land parcels in Xuhui District, Shanghai, for the Dong'an redevelopment project.

China Overseas said the deal will expand its presence in Shanghai and enhance long-term competitiveness.