March 28 (Bloomberg) -- Meydan LLC, the Dubai state-owned developer of the world’s biggest horse-racing complex, will build a $4 billion development near Tianjin in China.

“We have been invited by the Chinese government to share our knowhow on a brand new industry,” the project’s managing director Teo Ah Khing said in Dubai today. “There are no integrated structures for horse racing, breeding or auctioning in China and that’s what they appreciate about Meydan.”

Malaysia’s TAK Design Consultants, China’s Zhouji Jiye and Tianjin Farm Group will partner with Meydan on the project, the company said in a statement today. They will build an equestrian college, feedstuff plant, breeding base, horse hospital, and quarantine centre. The project will also include grandstand in the shape of a phoenix, homes, offices and three hotels with a total of 4,000 rooms to be built on farmland granted by the Chinese government.

A portion of the land will be sold to “different commercial entities and end-users” to raise funds necessary for developing the project,” Meydan’s commercial director Mohammad Al Khayat said. “We have also other sources of funding such as banks and international financial institutions.”

The project will be owned in partnership, Al Khayat said. “There is no full ownership, it has to be a partnership because the land is granted by the government,” he said, adding Dubai hasn’t decided yet on its financial contribution to the project.

Work on the project is expected to start in 10 to 12 months following the completion of soil and transportation studies, Teo said.

“It is estimated that the project will pay hundreds of millions of taxes and profits to the State within five years, provide employment for 10,000, and develop a horse industry economy that will establish production franchise of standard scales across China,” the statement said.

Tianjin Horse City has filed its application to the Chinese Equestrian Association for the establishment of a national equestrian sports and horsing racing training base.

Source: March 29, 2010, Businessweek