GUANGZHOU R&F Properties Co, the southern Chinese city's biggest developer, will pay as much as 1.1 billion yuan (US$144 million) to buy Guangzhou Tianli Construction Co to cut costs and improve quality control.

The purchase price, to be set at four times Tianli's audited net income for the year ended on December 31, will be no more than 1.1 billion yuan and no less than 600 million yuan, Bloomberg News reported.

"The acquisition will enable the group to secure control over the construction phase of its operation, ensuring that products' quality are commensurate with the brand image," the statement said.