Li, Kuok firms in mainland port deal
Companies controlled by Li Ka-shing and Robert Kuok have formed a joint venture with Hong Kong-listed Beijing Properties (Holdings) to develop a port on the mainland.
The joint venture, tentatively named Beijing Bei Jian Tong Cheng International Logistics, would receive a maximum investment of 2 billion yuan (HK$2.41 billion) to invest in, develop and operate the logistics base in Beijing, said Beijing Properties, which is controlled by the Beijing government. The venture will have a registered capital of 1 billion yuan.
Kerry Logistics will own 24 per cent of the joint venture, Hutchison Port Holdings (HPH) will own 24 per cent, a wholly owned subsidiary of Beijing Property will own 32 per cent, and the remaining 20 per cent will be owned by Beijing Inland Port International Logistics, a related company of Beijing Properties.
'By entering into the joint venture, Beijing Properties is able to commence its logistics properties businesses, with the vision to be one of the top three investors, developers and operators of logistics properties in China,' Beijing Properties said.
The joint venture will develop and operate Majuqiao port, a 564,000 square metre inland logistics facility in Tongzhou, a district in southeast Beijing with connections to expressways and rail.
Kerry Logistics is a logistics company wholly owned by Kerry Properties, a Hong Kong-listed property firm controlled by Kuok. HPH is a port conglomerate controlled by Li.
In 2009, Beijing Properties received investments from Kerry Group and Beijing Holdings. Kerry Group, which is controlled by Kuok, owns 10.9 per cent of Beijing Properties and publishes the South China Morning Post.
Ang Keng Lam, the vice-chairman of Kerry Holdings, which controls Kerry Properties, is an executive director and vice-chairman of Beijing Properties.