Icelandic financial services group Glitnir announced a joint venture project with Sinopec’s CGC Overseas Construction Co. Ltd. (CGCOC) on Thursday, for the development of a residential compound in China.
The agreement was reached at CGCOC’s headquarters in Beijing on June 5, and marks Glitnir’s first real estate joint venture project in China, as described in a Glitnir press release.
“We believe this is a landmark transaction for Glitnir in China. We opened our representative office in Shanghai in December last year, and this prominent investment role in China’s booming real estate market diversifies further our already established activities in China in geothermal energy, and in the shipping and seafood industries,” said Magnús Bjarnason, Executive VP of International Banking in Glitnir.
The development site covers 230,000 square meters in the heart of Shenyang City, the capital of the Liaoning province in northeast China. The project is scheduled to be completed in two years and is one of the largest residential projects in Shenyang to date.
Glitnir will take a 20 percent stake in the new joint venture company, which has yet to be named, while CGCOC holds the remaining 80 percent. CGCOC, which is a subsidiary of Sinopec Star Petroleum Co. Ltd., is a major provider of infrastructure, energy exploitation and trade services.
