Jones Lang Plans Mall Mgmt JV In China

Source : The Business Times, September 13, 2007

(BEIJING) Global real estate services company Jones Lang LaSalle (JLL) is in talks with a shopping centre management firm to establish a 50-50 joint venture in China, a senior company executive said yesterday.

Managing director David Hand said the company 'is looking at doing a merger - a joint venture with an overseas expert in shopping centre management' to strengthen its hand in a market where the world's top retail brands are swarming in.

If everything goes smoothly, 'by the end of the year, we will be able to announce it', he told reporters.

Mr Hand, who is also head of Jones Lang LaSalle's China retail division, did not name the prospective partner.

He said the deal would make JLL the largest shopping centre management company in China and in Asia as well.

JLL provides management and leasing services to many shopping malls in China, including new developments in downtown Beijing. Its rivals include DTZ Holdings and CB Richard Ellis.

Mr Hand added that JLL would move its regional headquarters to China from Singapore to capitalise on Bejing's drive to spur consumption in order to wean the economy off investment and exports.

He did not say when the move would occur. 'In the future, China will be our strongest growth engine,' he said.

Mr Hand said he expected Beijing to roll out more measures to rein in foreign investment in Chinese property.

China has ordered foreign investors to register onshore and put more of their own money into their China ventures.

Mr Hand said the process of investing in Chinese real estate had become more cumbersome, but added: 'It's not stopping money coming in and out.' - Reuters