Tesco announces China property joint venture
28 February 2011 | by The Retail Bulletin
Tesco has signed an agreement to set up a joint venture to develop shopping malls in China.Fifty per cent of the joint venture will be owned by a consortium of leading Asian investors includi ng Singapore's Metro Holdings. The total value of the project is in the region of £170m with Tesco and the joint venture consortium each investing approximately £30m of equity. Debt will be provided by banks including the Industrial and Commercial Bank of China and Standard Chartered Bank.
This joint venture will comprise of three shopping malls in Shenyang, Xiamen and Fuzhou, each of which includes a Tesco hypermarket as an anchor tenant.
The Lifespace shopping malls are part of Tesco's long term strategy to invest in building a substantial business in China. Tesco currently operates four Lifespace malls and 93 Tesco hypermarkets in China.
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