20 Nov 2009 --- Tesco has signed an agreement to set up the first in a planned series of joint ventures to develop shopping malls in China. Fifty per cent of the joint venture will be owned by a syndicate of leading Asian investors including HSBC Nan Fung China Real Estate Fund, Singapore's Metro Holdings Ltd and Hong Kong's Nan Fung Group. HSBC advised on the transaction.

This joint venture will comprise three shopping malls in Anshan, Fushan and Qinhuangdao, each of which includes a Tesco hypermarket as the anchor tenant. Two of these - Anshan and Fushan - are mixed-use developments including retail, entertainment and residential properties.

The malls are part of Tesco's long-term strategy to invest in building a substantial business in China. Tesco will open 18 new hypermarkets in China in the twelve months up to February 2010.

Tesco currently operates 65 hypermarkets and 6 small stores in China comprising approximately 6 million square feet of space generating £417m sales in the six months to 29 August 2009.