Treasury China Trust strikes deal with TRIO Group

The company enters into a strategic partnership to expand into Shandong Province commercial property market in China.

Treasury Holdings Real Estate Pte Ltd, as Trustee Manager of Treasury China Trust (TCT), on Thursday has completed the signing of a Strategic Partnership Agreement with the TRIO Group to expand into China’s central coast province of Shandong, according to a TCT release.

This marks a strategic move for TCT into one of China’s major gateway cities outside of Beijing and Shanghai that will provide access to investment opportunities for TCT on a strongly accretive basis.

TCT said the TRIO Group has been operating in Qingdao (or Tsingtao) and the broader Shandong Province for over 15 years and has developed high quality real estate projects totaling in excess of three million square meters representing more than 20 projects, predominantly in the residential sector.

TRIO has received numerous awards including Qingdao’s “Outstanding Real Estate Developer” and ranked in the city’s Top 20 Private Enterprises in 2008.

According to the release, the Strategic Partnership will concentrate exclusively on commercial real estate, with a particular focus on retail properties and TCT will assume a majority equity and managerial control of all invested projects, from overseeing all design, development and asset management functions, to providing technology and systems transfers to TRIO through the shared management platforms. Market access is a fundamental component for the partnership, said TCT, and in this regard, the partnership ensures exclusivity and investment rights for both parties. More so, TRIO will utilize its local market knowledge and established network in Shandong Province to introduce investment and development opportunities to the partnership.

TRIO Director, Xie Jing Dong said, “We have been very impressed with the management platform and asset portfolio that TCT has built to date and the strong commitment it has made to China’s commercial real estate sector. This partnership recognises true alignment and combines the key individual strengths of TCT and ourselves to drive strong and significant long term investment performance for our mutual benefit.”

Located on China’s central east coast, Shandong is one of China's most populated provinces and third largest in terms of GDP.

CEO Richard David said, “We are very excited about this Strategic Partnership, and in TRIO we have identified a strong and capable group to assist with the continued growth of our business in China. It is critical to our ongoing success that we develop strategic alliances in key provincial regions. In this regard, the Shandong Province and particularly Qingdao, as a major east coast city, meet our expectations for economic growth and access to opportunities with accretive growth characteristics. TRIO has an excellent record in quality real estate development and in identifying and delivering direct access to investment opportunities. We look forward to a long term relationship with TRIO that will add considerable benefit to TCT and its unitholders.”

TCT has appointed J.P. Morgan (S.E.A.) Limited as financial adviser and issue manager of the transaction.