KUALA LUMPUR: Tan & Tan Developments Bhd, a wholly-owned unit of IGB Corporation Bhd, together with Mitsubishi Jisho Residence (MJR) will be jointly developing 1.48 acres (0.6ha) of freehold land along Jalan Stonor, Kuala Lumpur, with a planned gross development value (GDV) of RM617 million.

The proposed development will be undertaken by Cipta Klasik (M) Sdn Bhd (CKSB), which Tan & Tan owns a 70% interest in, while MJR Investment Pte Ltd (MJRI), a company formed by MJR, holds the remaining 30%.

Located in the KLCC vicinity, the project, called Stonor 3, will consist of a 41-storey upscale residential tower comprising 400 serviced apartments. The development is planned for completion in 2018.

“The unit sizes range from 688 sq ft to 1,313 sq ft, with prices starting from about RM1.1 million [per unit], and averaging at about RM1.45 million,” said Teh Boon Ghee, executive director of Tan & Tan, at the joint venture (JV) signing agreement yesterday.

“That’s our initial estimate but we are likely to refine the unit prices further when we launch the project — likely to be the middle of next year, after the goods and services tax is implemented [in April],” Teh added.

Meanwhile, Tan & Tan chief executive officer Tan Boon Lee said the group has confidence in the development programme that has been put in place by the government for Kuala Lumpur.

“Now is the right time to develop this project, especially with a strategic partner like MJR which will enable us to also tap into the international market,” Tan said.

The JV marks the Mitsubishi Estate group’s first foray into Malaysia. MJRI is a company under the umbrella of Mitsubishi Estate Co Ltd.

Both parties said they are looking at a “long-term” relationship.

“We are looking forward to opportunities to work together not only with the residential arm of Mitsubishi group, but we also hope to forge a relationship with its other divisions [as well]. The Mitsubishi group is involved in commercial office buildings, hotels, etc … which fits very well with our IGB group of companies, which also has different arms,” Tan said.

Katsuaki Mori, senior executive officer of MJR, added that any future collaborations between Tan & Tan or IGB, and MJR would not be limited to just within Malaysia, with developments in Japan as a possibility as well.

Mori does not discount MJR eyeing future developments in and outside the Klang Valley, which may include Iskandar Malaysia and Penang, but said its immediate focus is to build up its fundamentals in Kuala Lumpur with the first condominium project with Tan & Tan.