Kerry Properties Limited and the board of directors of Shangri-La have announced that they signed a contract on stock transfer and joint-investment for a construction project in Tianjin's Hedong District.

Shangri-la and its parent company Kerry Properties Ltd will ally with Allgreen Properties Limited, a Singapore listed company, to set up a joint venture company to develop the project at Tianjin South Railway station.

The three corporations will invest RMB4.5 billion on this project which will occupy about 499,000 square meters, including a Shangri-La hotel, service apartments, office buildings, shopping mall and attached facilities.

The first phase of the construction will be started in the fourth quarter of this year, and the whole project is expected to be finished in 7 years.

Shangri-la bought the land for the project in 1994 for US$60.4 million.