British retail giant Tesco has announced that it will set up a joint venture in China to develop its shopping center business in the nation.
The joint venture will be 50% owned by Tesco and the remaining 50% will be owned by Asian investors, including HSBC Nan Fung China Real Estate Fund, Singapore's Metro Holdings, and Hong Kong Nan Fung Group.
Tesco will is reported to be investing about GBP100 million in the joint venture. It will also establish three large shopping centers in Qingdao, Fushun, and Qinhuangdao in China. Each of these shopping centers will have a Tesco hypermarket as the main tenant.
According to Tesco, by the end of 2012, the chain will have opened 18 shopping centers in 14 cities around China.