Frasers Property and Tan & Tan Launch Five-Hectare Mixed-Use Project in Petaling Jaya

A Strategic Partnership in Malaysia's Urban Core

Frasers Property has entered a 50-50 joint venture with Malaysian property group Tan & Tan Developments to build a mixed-use precinct spanning 5.15 hectares in Section 13 of Petaling Jaya. The project, branded PJ Quarter, will unfold across two phases on a 99-year leasehold parcel currently held by Vacaron, a joint venture vehicle between the two developers.

The first phase will deliver residential towers, low-rise retail space, and a public park. Frasers Property announced that residential units will go on sale in 2027, targeting a mix of buyers in the Klang Valley's competitive housing market.

The site sits in a district undergoing government-led infrastructure upgrades, including pedestrian corridors and green linkages designed to improve walkability and connectivity. Section 13 has historically been an industrial and older residential enclave, but recent policy shifts have opened the door for higher-density, mixed-income redevelopment.

The Land Deal Behind the Project

Vacaron was originally a 50-50 venture between Frasers Property and Fraser & Neave Holdings Berhad (FNHB). In 2025, Tan & Tan acquired FNHB's stake for approximately RM180 million, or roughly US$55 million. That valuation represented half of Vacaron's adjusted net asset value, which was pegged to a land appraisal of RM360 million.

FNHB, a diversified conglomerate with interests in beverages and dairy, said at the time that the disposal would free up capital for its core manufacturing operations and its integrated agriculture and dairy farm in Gemas, Malaysia. The transaction allowed FNHB to exit a non-core real estate asset while Tan & Tan gained a foothold in a prime urban redevelopment site.

Following the divestment, Frasers Property and Tan & Tan each hold equal stakes in Vacaron, setting the stage for a partnership that combines Frasers' regional development track record with Tan & Tan's local market knowledge.

Urban Rejuvenation in Petaling Jaya

Petaling Jaya, a satellite city adjacent to Kuala Lumpur, has been a focal point for urban renewal as Malaysia's government pushes transit-oriented and mixed-use development to ease congestion and improve livability. Section 13, in particular, has benefited from infrastructure investments aimed at transforming older industrial zones into residential and commercial hubs.

The PJ Quarter development is positioned to anchor that transformation. Frasers Property described the precinct as a pedestrian-friendly lifestyle destination that will accelerate the area's ongoing rejuvenation. The project will occupy roughly seven football fields, making it one of the larger mixed-use schemes in the district.

Soon Su Lin, CEO of Frasers Property Singapore, noted that the development draws on both partners' experience with large-scale, mixed-use projects. He described the venture as part of a disciplined, partnership-led strategy focused on long-term value creation and expanding Frasers' development portfolio in Southeast Asia.

Tan Yee Seng, CEO of Tan & Tan Developments, highlighted the project's alignment with government efforts to enhance Section 13's infrastructure and public realm. He said the development will introduce new retail concepts and upscale residential options designed to appeal to a broad range of buyers.

What Comes Next

Phase one's residential component is slated for launch in 2027, but details on unit mix, pricing, and total gross floor area have not been disclosed. The retail and park components are expected to be delivered in tandem with the residential towers, though no specific timeline has been provided.

Phase two remains in the planning stages, with no announced program or timeline. Industry observers expect it to include additional residential or commercial space, depending on take-up rates and market conditions in the Klang Valley over the next several years.

The partnership represents Frasers Property's continued push into Malaysia's mid-tier cities, where land costs are lower than in central Kuala Lumpur but demand for quality housing and retail remains robust. For Tan & Tan, the venture offers access to Frasers' capital base and regional development expertise, particularly in mixed-use and master-planned projects.

Malaysia's property market has shown uneven recovery since the pandemic, with oversupply in certain segments offset by steady demand for well-located, transit-accessible developments. PJ Quarter's success will hinge on execution, pricing, and the pace of infrastructure improvements in Section 13.