Apac Realty, which operates a real estate brokerage under the ERA brand, has entered into a joint venture agreement with two Chinese firms in a bid to penetrate the China market.

The two companies are Hainan Zhong Zhi Sheng He Real Estate Investment Consulting Co, and Bei Guo Tou (Shanghai) Equity Investment and Fund Management Co.

The joint venture - ERA Hainan Real Estate Marketing Co - will conduct brokerage businesses, and establish training and licensing for property agents in Hainan.

"The full range of real estate agency services is similar to those offered in Singapore, such as brokerage services covering new sales, resales and leasing in the residential and commercial sectors," Apac Realty said yesterday.

Apac Realty and Zhong Zhi Sheng He Real Estate Investment will each own a 40 per cent stake in the new venture, with Bei Guo Tou (Shanghai) taking on the remaining 20 per cent.

The registered share capital of the joint venture is 20 million yuan (S$4 million), Apac Realty said. As part of the deal, all existing project-sale businesses from Zhong Zhi Sheng He Real Estate Investment will be transferred to the new company.

Apac Realty's new venture comes even as the Chinese government has imposed controls across the country to rein in escalating property prices.