Deutsche Bank plans China property JV -sources
SHANGHAI, Oct 27 (Reuters) – Deutsche Bank AG is set to establish a property venture in China, in which Germany’s biggest lender expects to take a 50 percent controlling stake, industry sources and the venture’s Chinese partners said on Friday.
Zhongzhu Real Estate, based in the southern Chinese city of Zhuhai near Hong Kong, plans to take 20 percent of the new joint venture, said a senior executive at Zhongzhu who is familiar with the situation.
“We’re finalising the deal and we will sign an agreement” in the next few days or weeks, the Zhongzhu executive, who declined to be identified, told Reuters by telephone.
The sources declined to say how much Deutsche Bank would pay to invest.
A Shanghai-based banking source said Deutsche Bank had been negotiating with Zhongzhu and other parties for about half a year, though no final decision had been made yet.
The sources said a Macau company would take 25 percent of the joint venture, and another Chinese company would take 5 percent. ADVERTISEMENT
A spokeswoman in Sydney for Deutsche Bank’s asset management division, which deals with property investment in Asia, declined to comment on Friday.