A parcel of land in Malaysia's fast-growing Iskandar region that Singapore-listed crawler crane supplier Tat Hong Holdings bought in 2011 for storage use has risen more quickly in value than expected.

This has led the firm to decide to develop the land, located in the Nusajaya area of Iskandar, for mixed use, together with some partners.

It will also realise some $14 million in gains from the higher value of the land even before the development work begins.

Originally earmarked for a storage and maintenance facility for Tat Hong's construction cranes, the land has now appreciated so quickly in value that it has become too expensive for such usage.

The firm also said in a statement on Monday that its original plan does not gel well with plans for the Nusajaya area, which include residential, commercial, educational and medical facilities.