China Zhong Jin Yin Di City Development, a State-owned real estate company, is investing 10 billion yuan ($1.56 billion) in the Moscow property market, which it believes has huge potential and can deliver a high return on investment.

The company signed a strategic cooperation framework agreement with Sistema JSFC, the largest conglomerate in Russia, earlier in the year, paving the way for its entry into the market.

Both the companies will jointly bid for a 109-hectare land plot in central Moscow, with total investment expected to reach 2.5 billion yuan, according to Felix Evtushenkov, first vice-president of Sistema JSFC.