Sumitomo Forestry Co. and Kumagai Gumi Co. have formed a joint venture in Singapore to explore property development projects in Asia.

They injected capital of around $40 million to launch SFKG Property Asia Pte. Ltd., with Sumitomo Forestry's Singaporean arm, Sumitomo Forestry (Singapore) Ltd., holding a 51% stake and Kumagai Gumi the remainder. The establishment marks the first overseas arm under their collaboration.

As the duo's first joint overseas project, the venture will take part in a $150 million project developing a 35-story condominium and a 27-story commercial complex, housing a total of around 900 units, in the heart of the Indonesian capital of Jakarta. Sinarmas Land Ltd. and PT Alas Kusuma will also participate. The construction of the twin tower will begin in 2021, with completion scheduled for 2024.