A unit of Chinese property developer China Resources Land Ltd. agreed to contribute 2.40 billion yuan to a newly established property investment fund that will have an initial total capital commitment of 15.00 billion yuan.

Under the terms of an Oct. 12 partnership agreement, Nanning Shen Shou Run Investment Management Co. Ltd. will be the general partner in the Guangxi Guoshou Shen Run Investment Development Fund LP and will commit 1 million yuan.

The developer's China Resources Land (Zhuhai) Co. Ltd. unit will be a limited partner, along with China Resources Venture Capital (Shenzhen) Co. Ltd., Shanghai Expo Land Holdings Ltd. and China Life Insurance Co. Ltd., which will commit 9.00 billion yuan to the fund, representing a 60% interest. China Resources Venture Capital and Shanghai Expo Land will commit 4% and 20%, respectively.

The fund will be registered in China and will primarily look to invest in office property, hotel, commercial property and long-lease apartments projects, as well as related peripheral service projects. It will have an eight-year term with two one-year extension options.

China Resources Land said it plans to use its internal resources to fund its share of the capital commitment.

As of Oct. 12, US$1 was equivalent to 6.92 yuan.