Developer TEE Land and construction group KSH Holdings will buy land in Malaysia and develop it into a mixed development.
In separate announcements to the Singapore Exchange, the companies said they will acquire 26 plots of freehold land in Selangor for about $36 million through a nominee company of Klang City Development (KCD).
TEE Land owns a 60 per cent stake in KCD, with KSH holding the remaining 40 per cent.
The land, amounting to some 679,000 square feet, will have a potential plot ratio of 1:5.
There are plans to develop it into a mix of residential and commercial spaces, including a hotel, serviced apartments and shopping mall, among others.
TEE Land will pay $21.6 million for the purchase, which it said will be funded by its initial public offering proceeds and external bank borrowings.
KSH's share of the purchase will come in around $14.4 million and will be funded by proceeds from floating rate notes and external bank borrowings.
The companies said the proposed purchase is in line with their strategy to expand into Malaysia.
TEE Land shares closed flat at 31.5 cents, while KSH stock lost half a cent to 46.5 cents.