HINES, a United States real estate investment, development and management company, has agreed to sell its entire stake in a commercial property development in Lujiazui area in Shanghai's Pudong New Area to Shui On Group, less than two weeks after disposing another of its local portfolio in the city's Yangpu District to two Chinese developers.

Shui On Construction and Materials Ltd (SOCAM), a subsidiary of Shui On, said in a filing to the Hong Kong stock exchange that it has entered into an agreement through one of its indirectly-owned units to acquire HPL-Hines Development Pte for 900 million yuan (US$135 million).

HPL-Hines owns 72.76 percent in 21st Century Tower, a 49-story, 92,000-square-meter building, comprising offices, retail and residential units, next to the Shanghai World Financial Center.

Under the deal SOCAM has acquired the 26th to 49th floors of the project, and part of the first, second and basement floors, totaling about 51,000 square meters. The project is expected to be completed in 2011, the Hong Kong developer said.

SOCAM also said it plans to cooperate with the Four Seasons brand to offer both serviced residence and hotel accommodation.

On November 5, Hines agreed to sell California Place, its first mixed-use project in Shanghai, in New Jiangwan Town to Guanzhou R&F Properties Co and KWG Property Holding Ltd, two Hong Kong-listed developers, for US$353.5 million.

"These are probably indications that the US developer is somewhat retreating from the local market as its portfolio here has been reduced to only one project, which is a serviced apartment development near Suzhou Creek," said Xue Jianxiong, an analyst with China Real Estate Information Corp.