Sept 26 (Reuters) - Seazen Group said on Tuesday Asian investment firm PAG's subsidiary had agreed to buy the Chinese property developer's business, which controls Shanghai Xingyi Cinema Management, for 1.37 billion yuan ($187.44 million).

The sale of Changzhou Hengxuan Consulting Management, which owns a 97.6% stake in Shanghai Xingyi Cinema Management, to PAGAC IV Holding II will allow Seazen Group to increase capital and reduce its gearing ratio, the company said in a filing to the Hong Kong stock exchange.

The property developer may use proceeds from the deal primarily for loan and debt repayment, Seazen Group said.

Changzhou Hengxuan and Shanghai Xingyi altogether manage 144 cinemas in China, Seazen Group said.

The deal is subject to certain procedures including a review by China's State Administration for Market Regulation, the filing said.

Changzhou Hengxuan also agreed to repay loans of 856.4 million yuan owed to Wealthzone Development, a different subsidiary of Seazen Group, the filing said. ($1 = 7.3090 Chinese yuan renminbi) (Reporting by Roxanne Liu and Kane Wu. Editing by Jane Merriman)