November 19, 2014

China state-owned realty firm to invest in food production in Australia

State-owned Chinese real estate firm Greenland said it was prepared to invest hugely in Australia, particularly in agriculture and dairy, after both countries sealed Monday a free trade agreement that will give the Australian agricultural sector a tariff-free access to the Chinese market and China greater access to investment projects in Australia.

Greenland chairman Zhang Yuliang said in an interview with Australian media that with the "conclusion of the free trade agreement there will be more and more Chinese investment into infrastructure, urban renovation and the construction of hotels and offices, and of course agriculture, food and finance."

He added that Greenland's "next step is to acquire some kind of Australian food and agriculture companies and import more Australian products into China."

The zero import tariffs on Australian produce including dairy, beef, wine, horticulture and wool will make agriculture one of the biggest winners under the free trade agreement, which will take effect only after 2015, after finalising all the legal points.

"The agreement... means Australian products will be very competitive in Chinese markets. Our investment in such a kind of field will help bring more and more Australian products into China," Zhang said.

In the past Greenland led Chinese developers in buying up inner city sites in Sydney and Melbourne. It has invested more than $1.4 billion and developed the 600-apartment Greenland Tower skyscraper in Sydney. It has also redeveloped Melbourne's Flemington race course and partnered with Crown in a bid to acquire Brisbane's Queens Wharf casino.

Greenland's future investment will, however, involve incursions into the dairy, wine and agriculture industries, particularly food production, processing and distribution, Zhang said.