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.
(Credit: The Edge Singapore)
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.