SYDNEY - Global investment group Blackstone Real Estate Partners VI (Blackstone), through its portfolio company Valad, has entered into a binding agreement to sell Gold Fields House, a prime office building located at Circular Quay in Sydney's central business district, to Chinese property giant Dalian Wanda Group for approximately A$415 million (around $327 million).

Valad was acquired by Blackstone in a public to private transaction in 2011 and was Blackstone's first major real estate investment in Australia.

Gold Fields House was among the assets acquired as part of the Valad portfolio and has been successfully repositioned.

"Gold Fields House is one of the most significant investments acquired in the Valad portfolio and is a great example of Valad's capability to reposition assets to achieve their full potential," said Chris Heady, Blackstone's Head of Real Estate Asia, in a statement Monday.

"Blackstone has built a diverse real estate portfolio in Australia of over A$3.5 billion of assets and we are committed to pursuing acquisitions and disposals that benefit our investors and joint venture partners," Heady added

The 1960s office building on One Alfred Street has been granted approval for redevelopment into one of Sydney's premium residential complexes, taking advantage of the site's prime location overlooking Sydney Harbour Bridge and the Sydney Opera House.

"Wanda Group has recognized the iconic location, and intends to create a mixed-use development including a 5-star hotel, luxury residential and retail. We look forward to creating a new Sydney landmark," said Wanda Group.

Chinese property giant, backed by Chinese billionaire Wang Jianlin, is planning to invest $1 billion in the redevelopment project once the transaction is completed in March.

This is the second acquisition by the Wanda group in Australia. In August last year, Wanda acquired a majority stake in a beachfront hotel and apartment project in Queensland, Australia.

Wanda group, which is planning to open up amusement parks in China to rival Walt Disney and Universal Studios, is among a number of Chinese real estate companies that are very active in major Australian cities.

In a recent survey by KPMG and the University of Sydney, Chinese investors ranked "making profit," "building up international brand name" and "securing resources" as the top three reasons for real estate investment in Australia.

Chinese individual investors and immigrants too have been very active in the real estate market. According to a report by Credit Suisse, Chinese investor are estimated to have spend $24 billion on Australian properties from 2006 to 2013.

Going by the trend of more and more Chinese investments flowing in from companies and individuals, Credit Suisse estimates that Chinese investments in the Australian real estate will rise to $44 billion by 2022.

Apart from Australia, in the last two years the Wanda Group has agreed to invest nearly $2 billion in London and Madrid hotels and properties, according to Reuters.

Last week, Wanda said it was buying a 20 percent stake in Spanish football club Atletico Madrid for 45 million euro - making it the first Chinese company to invest in a top European football club.

Hong Kong listed shares of Dalian Wanda Commercial Properties were up 3.4 percent after the deal with Blackstone was announced.