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NEW YORK, Feb 18 (Reuters) - Tishman Speyer and China Vanke Co, one of the world's largest real estate developers, have formed a joint venture to develop two high-rise residential condominium towers in San Francisco.
The planned development is to be managed by Tishman Speyer and will be China Vanke's first foray into the U.S. real estate market, the companies said in a press statement on Monday.
The project will cost about $620 million, with China Vanke contributing $175 million and Tishman Speyer $75 million, a source familiar with the deal said. Debt financing will cover the rest of the cost. China Vanke will have a 70 percent stake in the joint venture and Tishman 30 percent, the source said.
The project at 201 Folsom Street will consist of two connected residential towers, one 37 stories and the other 42 stories high, and have a total of 655 residences.
The site is located across the street from The Infinity, a pair of residential towers developed by Tishman Speyer. The Infinity's residences carried price tags ranging from $600,000 to $6 million.
Rob Speyer, president and co-chief executive, led the deal for Tishman Speyer.