U.S. private equity firm Blackstone Group said it has agreed to sell a prime Sydney office building to China's Dalian Wanda Group for about A$415 million ($327 million).

Blackstone acquired Gold Fields House, located in Sydney's central business district and overlooking Sydney Harbour, as part of its purchase of Australian property group Valad in 2011.

China's biggest property conglomerate plans to build a 5-star hotel as well as luxury residential and retail developments at the location, the company said in a statement. "We look forward to creating a new Sydney landmark," it said.

Developer Wanda is backed by China's fourth-richest man Wang Jianlin and last year a group company Dalian Wanda Commercial Properties Co Ltd raised $3.7 billion through a Hong Kong listing.

The purchase adds to a string of deals as Wanda expands overseas and diversifies away from a weak domestic real estate market. Over the past two years, the company has agreed to invest nearly $2 billion in London and Madrid hotels and properties.