The British retail giant Tesco PLC has announced plans to establish a joint venture with a financial group to develop shopping centers in China.
Tesco says that this financial group is mainly composed of Asian investors such as Metro Holdings. Tesco and the financial group each invests approximately GBP30 million and equally share the equity of the joint venture. This company is the second real estate joint venture of Tesco and its first joint venture has developed three shopping centers in Qinhuangdao, Anshan, and Fushun, respectively.
According to Tesco's statement, the Industrial and Commercial Bank of China and the Standard Chartered Bank will offer loans to the new joint venture, which will develop three shopping centers in Shenyang, Xiamen and Fuzhou in the future.
As of today, Tesco has owned 93 hypermarkets and 12 Express stores in China. In 2010, Tesco opened 14 new stores in China.