CapitaLand Malaysia and Temasek Holdings will develop a $3.2 billion township with Iskandar Waterfront Holdings in Malaysia's Danga Bay.
The agreement was inked today by the three companies at Danga Bay Convention Centre, witnessed by the prime ministers of Singapore and Malaysia.
The township development is located in one of five flagship zones in Iskandar Malaysia, and is about 10km from the Johor Causeway.
The 71.4 acre site will be turned into a waterfront residential community comprising high rise and landed homes, as well as a marina, shopping mall, restaurants, serviced residences, offices and recreational facilities, CapitaLand said in a statement.
Johor's Menteri Besar Abdul Ghani Othman thanked Prime Minister Lee Hsien Loong and Malaysia's Prime Minister Najib Razak for their efforts in deepening ties between the two countries, which made possible such a project.
"This is a classic example of the feel good sentiment now prevailing on both sides of the border," he said.
He added that he hoped the deal "will give confidence to others waiting on the sideleines that investing in Iskandar is something not to be missed".
CapitaLand Malaysia will hold 51 per cent of the joint venture stake, Iskandar Waterfront 40 per cent and Temasek 9 per cent.