SHANGHAI Lujiazui Finance & Trade Zone Development Co said yesterday it has teamed up with Kerry Properties Ltd and two other partners to invest a total of US$489 million to co-develop commercial properties near the city's largest exhibition center.

State-owned Shanghai Lujiazui, developer of the city's Lujiazui financial district, will invest US$32.6 million for 20 percent in a venture to be set up together with Shangri-La Asia Ltd, Kerry Properties Ltd and Singapore's Allgreen Properties Ltd for the purpose, the company said in a statement.

The new property venture has acquired a 58,900-square-meter plot of land near Shanghai New International Expo Center to build a complex comprising a hotel, offices, convention center and shops, to cater to growing demand from exhibition activities in the SNIEC.

As the city's landmark exhibition center, SNIEC plans to expand its exhibition space to 330,000 square meters from the current 80,500 square meters by 2010 when Shanghai is to host the World Exposition.

SNIEC, a joint venture between Shanghai Pudong Land Development (Holding) Corporation, and three German exhibition firms, has seen a 72 percent rise in exhibition space lease last year over 2003.


Separately, COSCO Development Co Ltd, another Shanghai-listed developer, said yesterday its biggest shareholder, Shanghai COSCO Salim Group Co Ltd, may become wholly owned by Indonesia's Salim Group subject to final approval from Chinese authorities.

The Salim Group, controlled by tycoon Liem Sioe Liong, acquired a 45 percent stake in COSCO Property Group for US$500 million and changed its name to Shanghai COSCO Salim Group Co Ltd in 2003.

China Ocean Shipping (Group) Company and Shanghai COSCO Real Estate Investment Co Ltd, which own 45 percent and 10 percent of the firm, signed deals in September with Salim's Success Medal International Limited to sell the stake.