(Yicai) June 26 -- Chinese builders Shui On Land and Tian An China Investments have established a joint venture to invest nearly CNY2.9 billion (USD404 million) to acquire a 50 percent stake in a developer of a premium land project in Shanghai.

The equity transfer and price were disclosed by property rights transaction service agency Shanghai United Assets and Equity Exchange. In addition, sources at Shui On Land told Yicai that the target firm is Yongye Urban Renewal Construction and Development, the owner of the project's development rights.

The project is adjacent to Shanghai's Xintiandi neighborhood, the sources said, adding that Shui On Land, which has nearly 30 years of development experience in the area, will serve as its operator.

The project includes a 100-meter high-rise residential building, a 150-meter super-high-rise residential building, a 170-meter super-high-rise residential building, and other buildings, including villas. Its sellable residential area reaches 156,000 square meters.

Based on rough calculations at a unit price of about CNY200,000 (USD27,865) per sqm, the project's residential part can bring revenue of more than CNY30 billion (USD4.2 billion).

The project is located on the east side of Xintiandi, and luxury housing projects in surrounding areas sell for on average more than CNY160,000 per sqm. In addition, they usually sell out immediately after opening, including Shui On Land's Jade Buddha Heights project.

Among the 11 real estate projects in China with sales exceeding CNY10 billion last year, three were in Xintiandi, according to statistics from CRIC.

Shanghai-based Shui On Land holds a 30 percent stake in the new JV, while Hong Kong-based Tian An owns the rest, the former previously announced. Based on this ratio, the pair may indirectly own 15 percent and 35 percent of Yongye Urban Renewal, respectively.

Editors: Tang Shihua, Martin Kadiev