Retail REIT Taubman Centers has entered into an agreement with Morgan Stanley Real Estate Funds and Gale International to develop a $20 billion mixed-use project in South Korea. Pending a final agreement, the new company would have exclusive rights to invest in and manage this retail joint venture beginning in 2005.

The 1,500-acre New Songdo City is one of the largest mixed-use projects ever to be built, and will be the first time U.S developers have worked with Korean businesses to jointly develop a project of this scale. The final project will include 50 million sq. ft. of office, 30 million sq. ft. of residential, 10 million sq. ft. of retail and 5 million sq. ft. of hotel space.

"We are excited to be part of New Songdo City and by the opportunity to jointly invest in the retail components of this project with two great organizations that are both long standing clients and partners of Morgan Stanley," says KS Sonny Kalsi, managing director and head of Morgan Stanley Real Estate in Asia.