An entity affiliated with Dalian Wanda has agreed to sell yacht builder Sunseeker International to Lionheart Capital, according to people with knowledge of the matter.

The Chinese conglomerate and Miami-based Lionheart have signed a so-called sale and purchase agreement, said one of the people.

The transaction, which is subject to British regulatory approval, is poised to close as soon as next month.

Wanda was once seen as one of the few high-quality Chinese issuers in the junk-bond market thanks to its focus on commercial real estate as well as its asset-light property management business. The conglomerate came under pressure after borrowing costs surged and Beijing cracked down on the property sector.

Lionheart, led by founder Ophir Sternberg, has backed companies including restaurant chain BurgerFi International, reimbursement specialist MSP Recovery and technology company SMX (Security Matters).

Wanda acquired a 92 percent stake in Sunseeker in 2013 for “an estimated ?320 million,” or HK$3.8 billion at the time. Wanda chairman Wang Jianling said then that the investment was driven by growth in China’s consumption of high-end luxury products.”

Bloomberg