Singapore sovereign wealth fund GIC has partnered with listed Chinese developer Yanlord Land Group to co-invest up to RMB7bn (€850m) in residential projects in China.

In a filing to the Singapore stock exchange, Yanlord said that its subsidiary, Yanlord China Investment, had entered into the agreement with an affiliate of GIC.

The GIC affiliate would take a 49% stake in projects undertaken by the venture under a “co-operation programme”, which would have a term of seven years. There was provision for an option to extend the partnership for a further two years.

Yanlord said the agreement built on the two parties’ previous and existing co-investments in the Chinese property development market over more than a decade.

Zhong Sheng Jian, Yanlord Land Group’s chairman and CEO, said GIC first invested with Yanlord in 2006 in Nanjing, and that the partnership would now be expanded to key cities in the Mainland.

“The co-operation programme will further strengthen our presence in the PRC and create value to shareholders,” said Zhong.

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