Published: 2 August 2005
US retail real estate trust Simon and a Morgan Stanley arm have agreed to join the Shenzhen state-owned property company in developing shopping centres in China.
They’ve identified 12 so far. Each will have 40-70,00mÂ² on multi-levels, all will have a Wal-Mart anchor and Warner Theatres may also be an anchor.
Simon Property Group, biggest owner, developer & manager of retail real estate in the US, the Morgan Stanley Real Estate Funds & Szitic Commercial Property Co Ltd, retail property subsidiary of the Chinese state-owned trust & investment firm, Shenzhen International Trust & Investment Co Ltd, signed a co-operation framework agreement to develop the projects. Simon & the Morgan Stanley funds will own 32.5% of the enterprise each and Szitic 35%.
The venture’s first project will be a 46,000mÂ² mall in Hangzhou, population 6 million, 2 hours from Shanghai. Construction is scheduled to start in October with an expected completion date in early 2007.
Simon chief executive David Simon said last week: “We are very excited about the retail development opportunities in China and we believe that being the first US-domiciled reit to enter this critical 21st century market further solidifies our position as one of the world’s pre-eminent retail real estate companies.”
Simon’s taken a lead before â€“ it was one of the first US reits to develop projects in France, Poland & Italy and now has interests in 52 European shopping centres.