CAPITAMALLS Asia (CMA) has agreed to spend 1.45 billion yuan (S$281 million) in a two-third stake in a retail and office project in Shanghai, further cementing its strong presence in the Chinese market.

The firm said on Monday it had entered into an agreement with Beatles Holding to obtain a 66 per cent investment in the development - comprising a planned six-storey shopping mall and a 31-storey office tower - in Luwan district.

The project, to cost nearly $750 million, is located near Xintiandi, a vibrant dining and entertainment area. It is set to be fully completed by 2015.

Beatles Holding holds 96 per cent of the equity interest in Shanghai Yongwei, a company incorporated in China, which owns the property.

Owing to a confidentiality agreement, however, CMA is unable to disclose the identity of Beatles Holding, which The Straits Times understands to be a private equity firm.

The price to be paid by CMA was 'arrived at on a willing-buyer willing-seller basis, taking into account the valuation of the property among other factors', it said in a statement on Monday.

CMA buys into Shanghai property