HONG KONG (REUTERS) - Country Garden, China's third-largest property developer by sales, has signed a preliminary agreement to invest up to US$2.7 billion (S$3.65 billion) in the British city of Birmingham, Chinese state media Xinhua reported on Wednesday.

Country Garden will initially explore large-scale investment opportunities in the UK's second-largest city with particular focus on regeneration and investment options related to a high speed rail project, Xinhua said.

The partners will seek areas of collaboration to deliver significant new housing stock.

Commenting on the Xinhua report, a Country Garden official said investment talks are still at an early stage.

Birmingham city council leader John Clancy, who was in China for a week-long trade mission, signed the agreement with Country Garden on Tuesday.