Chinese supermarket operator Yonghui Superstores has entered into a joint venture agreement with Hengli Properties Development Group to develop and operate retail space in Fuzhou City.

Hengli will contribute 70% - or CNY490m (US$75m) - of the total investment, which is expected to total CNY1.4bn. The remainder of the capital will be supplied by Yonghui.

"Yonghui is a well-known brand with rich experience in retail properties. Combining that and Hengli's extensive experience in commercial real estate development, we believe it would be mutually beneficial," Hengli chairman Chen Chang Wei said.

Yonghui operates 200 supermarkets throughout China.