Blackstone has agreed to sell the Gold Fields House property at Circular Quay in Sydney to Dalian Wanda Group for about $415 million.
The property already has planning approvals to allow the 1960s office building to be converted into a residential development, taking advantage of a location overlooking Sydney Harbour Bridge and the Sydney Opera House.
"Wanda Group has recognised the iconic location and intends to create a mixed-use development including a five-star hotel, luxury residential and retail," the purchasing company said.
The property was Blackstone's first major real estate investment in Australia after its acquisition of portfolio company Valad in 2011.
Blackstone's Head of Real Estate Asia Chris Heady said the group's Australian portfolio now comprised more than $3.5 billion of assets.
"We are committed to pursuing acquisitions and disposals that benefit our investors and joint venture partners," Mr Heady said.
The transaction is expected to close in March 2015. Jones Lang LaSalle and CBRE acted as advisers on the sale.