A mixed-development commercial real estate project in Johor Baru, Malaysia, will go ahead as a joint venture between IGB Corp Bhd and Selia Pantai Sdn Bhd.
The project, called Southkey Megamall, will cost approximately RM 3 billion (USD $976.9 million), according to The Star. The two companies created a memorandum of understanding to create the joint venture. The project will be split 70-30, with IGB Corp receiving the larger amount.
"This MOU shall be the first step for Selia Pantai Sdn Bhd to realize its strategy of concurrent developments with established and reputable developer, IGB Corporation Berhad," said Datuk Mohamed Zaini Bin Amran, managing director of Selia Pantai Sdn Bhd. "Through this strategic partnership with IGB Corporation Berhad, it will combine all our strength and experiences to make a great difference."
The joint venture to develop the mall will be led by the newly formed Southkey Megamall Sdn Bhd. This will develop 36 of the total properties 300 acres.
There is still another six to nine month planning period involved in the project, with construction tentatively expected to begin next year. The project is expected to be similar to the existing Mid Valley City development, and will contain 1.5 million square feet of space.