A Bermuda-based company has invested more than $730 million in a luxury car dealers in booming China.

Jardine Strategic Holdings took a stake in Hong-Kong listed Zhongsheng Group Holdings chain of car dealerships in mainland China through an equity stake and convertible bonds.

Jardine Strategic director Adam Keswick said: “Zhongsheng is one of China’s premier motor dealership groups representing many internationally renowned marques.

“This long-term strategic investment provides us with a greater exposure to the mainland market in a sector we understand well and in which we feel Zhongsheng has the potential for substantial growth.

“We look forward to developing our relationship with the management of Zhongsheng and supporting the group’s continued expansion in China.”

Zhongsheng has more than 170 dealerships in the People’s Republic of China, including top names like Jaguar, Land Rover, Porsche, Mercedes-Benz, Audi and Lexus.

It also has dealerships in the mid to high end segment with Toyota, Nissan and Volkswagen franchises.

Zhengsheng chairman Huang Yi said: “The combination of Zhongsheng’s strong presence in the China motor dealership market, coupled with Jardine’s in depth experience in the sector across Asia and its long term vision, represents a powerful partnership. We are very excited by the opportunities it will create.”

Jardine Strategic, part of the massive Jardine Matheson group, will buy new shares equivalent to 12.5 percent of Zhongsheng’s existing share capital for the equivalent of $332 million and subscribe for an equivalent of $339 million of convertible bonds.

The bonds are exercisable within three years, at Jardine Strategic’s discretion, for a further 12.5 percent of the existing share capital of Zhongsheng.

After fully exercising its options, Jardine Strategic will an interest of around 20 percent of the then-issued share capital in the Hong Kong-based car firm.

The investment is to come from existing group holdings.

Jardine Strategic is 83 percent held by Jardine Matheson and has a premium listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore. The company’s interests are managed in Hong Kong by Jardine Matheson.