Tesco Sees Potential in Chinese Shopping Malls

2011-03-15

A recent announcement by Tesco PLC has revealed the British company's plans to set up a Joint Venture (JV) with a financial group to develop shopping malls in China.

The financial group, primarily made up of Asian investors such as Metro Holdings, will invest approximately USD 48.9 million for equal shares of the JV. This is Tesco's second real estate JV in China after developing three other shopping centers in Qinhuangdao, Anshan, and Fushun.

According to Tesco, Industrial and Commercial Bank of China (ICBC) and Standard Chartered Bank (SCB) has agreed to finance the loan for this JV. Development for the first shopping malls will be located in Shenyang, Xiamen, and Fuzhou.

Tesco currently owns 93 supermarkets and 12 express stores in China. Last year alone, Tesco opened 14 new stores across China.

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