Jusco commits to Shanghai venture

JAPANESE retailing giant Jusco has signed a deal to become an anchor tenant of a shopping mall in a massive property developed by a consortium led by Kerry Holdings.

It will take a 32.5 per cent stake in a retail joint venture, Shanghai Jusco, which will own and operate the department store when it opens late next year in Kerry Everbright City, a US$600 million office, residential and commercial complex in Zhabei.

Other retail venture partners are Kerry Department Store, which also has a 32.5 per cent interest; Mitsubishi, a five per cent stake; and Shanghai Surpass Industrial and Surpass Commercial, which will hold the remaining 30 per cent.

Yesterday, the partners signed an agreement to lease 139,900 square feet, witnessed by Kerry Group chairman Robert Kuok, who is chairman of South China Morning Post (Holdings), and Shanghai vice-mayor Xia Keqiang. A topping-out ceremony for the shopping mall was held.

Jusco will be the third major Japanese retailer to set up in Shanghai.

Isetan runs a store on Huaihai Zhong Road, while Yaohan is establishing one of Asia's largest stores in Pudong with Shanghai Number One Department Store.

'China is developing so fast and Shanghai is a major city - so, we have to be here,' said Eiji Akiyama, Jusco's executive vice-chairman. The retailer is setting up joint-venture department stores in Guangzhou and Qingdao.