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Tesco signs joint venture to build malls in China
China- Supermarket giant Tesco has signed an agreement to set up a joint venture to develop shopping malls in China.
Fifty per cent of the venture would be owned by a consortium of Asian investors including Singapore's Metro Holdings.
The project will involve building three shopping malls in Shenyang, Xiamen and Fuzhou. Each mall will include a Tesco hypermarket as an anchor tenant.
The £170million deal is funded by £30million of equity from Tesco and £30million from the consortium, with debt provided by banks including Standard Chartered and the Industrial and Commercial Bank of China.
Tesco currently operates four Lifespace malls and 93 Tesco hypermarkets in China.
