December 02, 2008

Marubeni and partners to spend USD 376 million on China project

Reuters reported that Japanese trading house Marubeni Corp and two partners would spend JPY 39 billion on a property development project at Shenyang in northeastern China.

The trading house said Marubeni, in partnership with Tokyu Land Corp and Hong Kong conglomerate Sun Wah group plan to build two condominium buildings in Shenyang by September 2009. Office and shopping complexes are also planned.

Marubeni said the three firms have set up a company under Sun Wah's umbrella to take charge of the planned project which will take a 25% stake. Tokyu will hold 5%. It said the move was part of its efforts to boost its real estate investment and development in China, a market the trading house first entered over 20 years ago.

The report added that in an effort to turn the city of Shenyang into an economic hub, the Chinese government has actively courted foreign capital.