China's property giant Wanda, owned by the country's richest man Wang Jianlin, has signed a memorandum of understanding to sell a historic Madrid skyscraper to a Spanish developer for 272 million euros, or about 300 million US dollars.

Wanda plans to sell all its shares of Wanda Madrid Development, which holds the 25-story Edificio Espana, to Spain's property developer Baraka Global Investment.

Wanda bought the historic Madrid landmark in June 2014 for 265 million euros, but its plans to develop the property into a hotel and shopping center have been met with hurdles from the local government.

Madrid's new anti-austerity Mayor Manuela Carmena has vowed to sternly scrutinize big building projects approved by the former conservative council.

Spanish reports said city authorities refused to let Wanda demolish the building's facade before reconstructing it.

Wanda has been on a high-profile overseas acquisition spree in recent years, including the 3.5 billion US Dollar purchase of Hollywood studio Legendary Entertainment in January.