Mid-tier developer Kerry Properties has teamed up with Shangri-La Asia and Allgreen Properties to develop a commercial-residential-hotel complex in Tianjin with an investment cost of 4.52 billion yuan.
Kerry said it would pay Shangri-La 313.13 million yuan for a 49 per cent stake in a company called Tianjin Kerry Real Estate Development. The deal also included a proportionate shareholders' loan of US$6.21 million.
The project will provide a gross floor area of 499,000 square metres in Tianjin's Hedong district, near the city's railway station.
Singapore-based Allgreen will take a 31 per cent stake in the project for 198.1 million yuan together with its portion of US$3.93 million shareholders' loan.
Kerry, Shangri-La and Allgreen are controlled by the Kuok Group, which is also the controlling shareholder of the SCMP Group, which publishes the South China Morning Post.
Kerry said the investment cost of the Tianjin project was estimated at 4.52 billion yuan but it could rise to five billion yuan.
This is the latest mainland property project invested by Kerry, which last month bought a 7,900 square metre commercial site in Shenzhen's Futian district for 645 million yuan.