LUXURY domestic property developer Greentown China Holdings has terminated its planned stake sale to another property developer, ending what had been anticipated as a high-profile consolidation deal between Chinese real estate firms amid the ongoing market downturn.

    Hangzhou-based Greentown China said in a statement Friday that it will refund Sunac China Holdings Ltd. with interest for the 24.3 percent stake in the firm. The statement didn’t say why the stake sale was terminated.

    In May, Greentown China chairman Song Weiping said that he, his wife and chief executive Shou Bainian would sell their combined stake to Tianjin-based Sunac in a deal worth HK$6.3 billion (US$812 million). Song said at that time that he was tired of the real estate business and wanted to hand the reins over to Sunac chairman Sun Hongbin.

    Greentown had been struggling with weaker cash flows following the government’s crackdown on red-hot property prices, but its sales have stabilized in recent months.

    Domestic media reported in November that Song had second thoughts about stepping down as chairman, throwing a wrench into the stake sale.

    Song said in a statement published Nov. 19 that he was wrong to agree to sell a stake in Greentown to Sunac.

    Song said “negative” events occurred after Sunac’s Sun took management control at Greentown, without further elaborating. Song said it showed him the genes of the companies “don’t blend” and he was “wrong” to sell shares to Sunac.(SD-Agencies)