PHNOM PENH, Nov. 24 (FN) -- Cambodian conglomerate LYP Group is preparing to ink a 1.5-billion-U.S.-dollar deal with China's largest private investment group to develop a subdivision within a 2,000-hectare satellite city the group is building north of Phnom Penh capital, local media reported Thursday.

Ly Yong Phat, president of LYP Group and senator of the ruling Cambodia People's Party, said his company would work with China Minsheng Investment Group (CMIG) to develop "Cambodia-China Friendship City" on 550 hectares.

The deal is expected to be signed on Dec. 1 during the Cambodia-Chinese Business Forum in Phnom Penh.

"It is a joint venture investment between our company and CMIG," Phat was quoted as saying by the Phnom Penh Post. "After the agreement is signed we will discuss the investment project more deeply."

According to Seng Nhak, director of LYP Group and Phat's son-in-law, construction on the Cambodia-China Friendship City will begin next year with 1.5 billion U.S. dollars in investment capital. The project will include a convention center, logistics centers, schools and other facilities, he said on Tuesday in a broadcast aired on LYP Group-owned PNN TV.

He added that the project would take shape inside Garden City, a satellite city project announced in 2012 that LYP Group is developing some 10 km north of the capital.