The Chinese state-backed property giant Greenland Group has struck a joint venture deal with Guangzhou-based Chinese developer Golden Horse for its proposed $1.6 billion seven-hectare residential project in Erskineville's Ashmore precinct in inner Sydney.

Greenland will take a 60 per cent stake in the project while Golden Horse, the original purchaser of the $380 million, seven-hectare site in Ashmore, will retain 40 per cent of the project, industry sources have confirmed.