The Shimao Group, the Palace Museum and the Forbidden City Cultural Heritage Conservation Foundation signed an agreement on Wednesday to join hands for the protection of relics in the Palace Museum, also known as the Forbidden City.

Under the agreement, the Shimao Group, which focuses on real estate, will donate 80 million yuan ($12 million) to the Palace Museum to support research and the protection project of the Hall of Mental Cultivation.

The hall, which used to be the living place of emperors, has seen many historic events during the Ming and the Qing dynasties (1368-1911) and is regarded a core part of the Forbidden City.

In 2002, the museum started a series of major renovation and protection projects with the approval of the State Council.

The Hall of Mental Cultivation project is regarded as urgent and a landmark one among those which are expected to be completed in 2020.

The donated funds will be managed by the conservation foundation.

Besides thanking the Shimao Group for its help, the Palace Museum's curator, Shan Jixiang, said at the signing ceremony that the funds would be used well.

The museum is now formulating a detailed plan to manage all similar donations.