SHANGHAI Zendai Properties Limited announced yesterday one of its subsidiaries has entered into a partnership with Shan Shan Investment to jointly develop a technology valley in China's northern Hebei Province.

Under a framework agreement signed last week, Zendai Land will acquire 30 percent of the registered capital of Zhongke Langfang Technology Valley Co Ltd from Shan Shan for 90 million yuan (US$11.69 million).

Following the acquisition, registered capital of the company will be increased to 550 million yuan in which Zendai will contribute 157.5 million yuan.

The two sides will also form a new joint venture company to develop commercial properties in the Zhongke Langfang Technology Valley in Langfang, a city about 40 kilometers from Beijing, Zendai said in a statement to the Hong Kong stock exchange yesterday.

Zendai will own 70 percent of the joint venture with Shan Shan taking the balance.

The joint venture will have an initial registered capital of 200 million yuan which will be increased by stages to 550 million yuan, according to the statement.

Zendai Properties, a diversified property development company specialized in development, investment and management of residential and commercial properties in Shanghai, its neighboring Zhejiang and Jiangsu provinces as well as northeast China, said the deal will enable the company to establish its presence in the Bohai Bay Rim in north China and possibly help it increase land reserves by about one million square meters in gross floor area.

Covering a total site area of about 3.3 million square meters, the technology valley, aimed to be developed into China's Silicon Valley by its operator, will have about 30 percent of area designated for commercial property development, according to the statement.

Shan Shan Investment is a privately owned conglomerate principally engaged in fashion and apparel, science and technology development, trading, biotechnology and metallurgy.