KUALA LUMPUR: Tan & Tan Developments Bhd has teamed up with Mitsubishi Jisho Residence Co Ltd ’s unit, MJR Investments Pte Ltd (MJRI), to develop an upscale residential project in the Kuala Lumpur City Centre with a gross development value of RM617 million.

Tan & Tan, a wholly-owned subsidiary of IGB Corp Bhd, yesterday signed a joint venture agreement with MJRI to develop Stonor 3 on 0.6ha in Lorong Stonor. The 41-storey project comprises 400 units of serviced apartments.

The deal sees the company taking part in the joint venture via an equity participation in Cipta Klasik (M) Sdn Bhd, a special-purpose vehicle set up for the development, said Tan & Tan chief executive officer Tan Boon Lee.

Tan & Tan holds a 70 per cent stake in Cipta Klasik while MJRI owns the remaining.

Tan said the project will commence in the middle of next year.

“In terms of cost, we will adjust our prices to follow the taxes and take advice from the upcoming 2015 Budget,” he said after the signing of the agreement.

The Stonor 3 project is expected to be completed within four years.

Tan said they expected 30 per cent of the buyers to be foreigners.

The prices will start from RM1.1 million and average about RM1.45 million.

MJR senior executive office Katsuaki Mori said the project was Mitsubishi Estate Asia’s first foray into Malaysia as part of its longer term plan to accelerate growth in one of Asia’s fast-growing markets.

“In light of the stable economic growth, demographic of many young people and the future expansion of public transportation in Malaysia, we feel that the country is a promising market,” he said.