UPDATE 1-Kerry, Shangri-La, Allgreen in $1 bln China JV

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HONG KONG, July 22 (Reuters) - Kerry Properties (0683.HK) said on Tuesday it will form a joint venture to invest up to 7.3 billion yuan ($1.07 billion) in a hotel and residential property project in northern China, tapping the growth of the world's fourth largest economy.

Kerry Properties will hold a 40 percent stake in the joint venture and sister firms Shangri-La Asia (0069.HK) will own 20 percent and Singapore-listed Allgreen Properties AGRN.SI will have 25 percent, the company said in a statement.

Winson Terrace International Ltd, a private company owned by Kuok Brothers Sdn. Bhd, will have 15 percent, it added.

Kerry Properties, a unit of the Kuok family's investment vehicle Kerry Holdings, said the companies had jointly won the bids for sites in Tangshan city at China's northern province of Hebei for a total of 1.7 billion yuan for the development.

Kerry Properties will provide project development, construction management and project consultancy services to the joint venture company and Shangri-La will manage the hotel after it is completed.

The project is expected to enhance value for shareholders of the venture partners and provide them with recurrent income.

Shares in Kerry Properties ended up 5.2 percent at HK$38.5 and Shangri-La rose 0.72 percent, outperforming the blue chip Hang Seng Index, which eased 0.02 percent on Tuesday. (Reporting by Alison Leung; Editing by Paul Bolding)