Once it has regulatory approval, the new joint venture, C2 Group, will provide specialised retail development, leasing, management and investment services to shopping mall owners, developers and investors within and outside China.

Also, Charoen Pokphand Foods Plc informed the Stock Exchange  yesterday that its wholly-owned subsidiary, CPF Europe SA, would establish a new subsidiary in Russia in the third quarter of this year.

 Robert F Welanetz, chief executive of Shanghai Kinghill Ltd, a real-estate subsidiary of Chia Tai Group, said the formation of C2 Group would allow the two companies to take full advantage of the enormous market opportunities in China. The Chia Tai Group is one of China's largest international investors.

He said China was the world's fastest-growing retail real estate market. It has seen double-digit growth in sales of consumer goods over the past five years, but still has a shortage of trained shopping mall development and management professionals.

Welanetz said that China offered tremendous market opportunities for international-standard retail property service companies such as C2 to serve the needs of retail property owners, developers and investors.

"The country also offers great potential for shopping-centre development and investment, as its shopping area per capita is still only 0.03 square metres, compared to 2.03sqm in the USA," he said.

Ren Tremblay, president and chief executive of Ivanhoe Cambridge Inc, added that the new venture would enable the two companies to combine their complimentary skills, experience and networks.

He said Chia Tai had a wealth of experience in China and already owned and operated one of the largest malls in Shanghai - Super Brand Mall. Ivanhoe Cambridge, on the other hand, is a market leader in retail property investment, development and management in North America and Europe.

"This partnership is in line with our strategy to increase the level of our international activities and investments. Together, we will be able to offer our clients from China and around the world a wealth of international experience, local knowledge and professional expertise," he said.

C2 Group, which will be headquartered in Shanghai, has already assembled a team of professionals with retail real estate experience in North America, Asia, Europe and greater China.

Meanwhile, the new Russian company, Charoen Pokphand Foods (Overseas) LLC, will specialise in animal feed and animal farming business, which are the roots of the CP group. It will have registered capital of 220 million Russian rubles (Bt310 million) and will be wholly owned by CPF Europe.

Adirek Sripratak, CPF's president, said yesterday that the Russian market had high potential for growth. A study by the company found that the animal feed market, in particular pig feed, was growing fast thanks to high demand for pork in Russia. The country consumes 2 to 2.5 million tonnes of pork a year.