Singapore-listed construction and property development firm Koh Brothers Group has formed a joint venture vehicle with two partners to develop a mixed-use project in Johor. That is estimated to have a gross floor area of about 449,539 sq ft.

The partners are a Malaysian subsidiary of Singapore real estate company Tang Group of Companies, as well as a special purpose vehicle (SPV) 100% owned by the Tang Group unit.

Following the completion of proposed share subscription by Koh Brothers in the SPV, it will be 25:75 owned by Koh Brothers and the Tang Group unit.

The JV agreement is conditional upon, among other factors, the Malaysian unit of Tang Group transferring the land plot meant for the mixed-use development in Pulai District, Johor Bahru to the SPV. The SPV will purchase the leasehold interest of the land for about RM35 million ($11.82 million).

Koh Brothers’ total investment in the SPV will amount to about RM7.5 million, including a RM250,000 subscription price for shares in the SPV.