HANG Lung Development and its property investment arm Amoy Properties have entered into a US$500 million joint venture property development in the centre of Shanghai. Chairman Ronnie Chan Chi-chung said Hang Lung and Amoy together would hold a majority stake in the development on Nanjing Road West, next to the Portman Shangri-La Hotel. He said it would comprise the development of two office towers on top of a 800,000 square-foot commercial complex on a 330,000 sq ft site. Gross floor area would be about 2.5 million sq ft. The local partner would be responsible for the resettlement of locals who would be affected by the development, he said. The intention was that Amoy would keep the commercial complex as a long-term investment. Mr Chan said the yuan's unified exchange rate would not affect his group's investment in China, as land values were usually paid in foreign currency. The group would also charge in foreign currency for the sale of the properties to foreign buyers, he said. The new project is Hang Lung group's third property development in Shanghai. On the property investment side in Hong Kong, Mr Chan said rental rates in the 14 office floors of Shui On Centre in Wan Chai, which Amoy had recently bought, were being raised. He said the monthly rental had reached HK$50 per square foot, representing an investment yield of more than six per cent on its acquisition of the floors.