Shimao's unit, Shanghai Shiying Investment Management Company, sold its entire stake in Shanghai Shimao Real Estate Development to property developer Shanghai Jiushi North Bund Construction and Development Co for 1.06 billion yuan ($167.26 million).
The deal comes as Chinese developers, including Evergrande and Kaisa Group, grapple with liquidity crunches amid tighter regulations.
The company, in a statement to the exchange, said the terms of the disposal agreement were "fair and reasonable" and on normal commercial terms.
($1 = 6.3375 Chinese yuan renminbi)
(Reporting by Tejaswi Marthi in Bengaluru; Editing by Amy Caren Daniel)