UK based retailer Tesco has today announced a new joint property venture in China which will see it invest in three shopping centres in the country.
In a deal worth £170 million, malls will be opened in the Chinese cities of Shenyang, Xiamen and Fuzhou, each of which will include a Tesco Hypermarket as an anchor tenant.
Half of the investment will be owned by Singapore’s Metro Holdings, a retail business which currently operates a chain of department stores and speciality stores in Singapore and Indonesia.
Research earlier this month showed that Tesco is set to be the fastest growing international grocer over the next four years and today’s statement said that this latest agreement was “part of Tesco’s long term strategy to invest in building a substantial business in China.”
Verdict research predicts that Tesco will grow its international business by 7.5 per cent a year between now and 2015.
The retailer currently runs four Lifespan branded shopping centres and 93 Tesco hypermarkets in China .
Debt for this new deal will be provided by banks including the Industrial and Commercial Bank of China and Standard Chartered Bank.