US fund boosts Shanghai presence in a redevelopment project in which China Overseas Land is also involved separately
Morgan Stanley Real Estate Fund will take part in a multibillion-yuan redevelopment project in Luwan - one of its biggest in terms of size - to bolster its investment in Shanghai.
The US fund's participation came after the initial plan for a partnership on the project with China Overseas Land and Investment failed to materialise.
Instead of jointly developing a residential-office-retail complex on a site of more than 188,000 square metres next to the trendy Xintiandi entertainment-retail district, the two firms may proceed with their projects on the site separately.
'China Overseas has been in talks with Morgan Stanley for more than a year on the possible co-operation but failed to come up with any joint-venture proposal. It is likely that we will do it separately,' said a source close to China Overseas, one of the mainland's biggest developers.
The development right to the site was first obtained by China Overseas when it signed a letter of intent with the Luwan district government to redevelop it as a residential-office-retail complex in July 2003.
