BEIJING, Sept. 15 (Xinhua) -- Gemdale Corp. said Saturday that its subsidiary has agreed to buy the 56.05-percent stake in Frasers Property (China) Ltd. held by Singapore's Fraser & Neave Ltd. for 1.65 billion Hong Kong dollars (213.4 million U.S. dollars).

The move comes as China's once-booming property market has remained tepid in recent months due to the government's tightening measures and the slowing economy, prompting foreign developers to streamline their businesses in the country.

Meanwhile, well-funded Chinese domestic developers hope to take advantage of their foreign rivals' retreat to take over their subsidiaries at lower costs and acquire a bigger market share, analysts said.

"The deal gives Gemdale access to international capital, which will help the company expand its overseas business," Gemdale said in a statement filed to the Shanghai Stock Exchange.

Profits at Gemdale, one of China's leading property developers, rose 5.1 percent year on year to 502 million yuan in the first half of the year. Enditem

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