The Singapore government today said it has bought a majority stake in a prime shopping centre in southern Johor state.

The Government of Singapore Investment Corporation, through its property arm GIC Real Estate, made the acquisition in Johor Bahru City Square through a venture with Malaysia's Merit Properties Sdn. Bhd.

It would own 70 percent of the shopping centre while Merit would hold the remainder, the GIC said in a statement, without revealing the sale price.

"The attractions of this property are its prominent location in the centre of Johor Bahru, its excellent building quality and its long term income profile," GIC Real Estate president Seek Ngee Huat said.

Opened in 1999, the five-storey shopping centre with 388,000 square feet of lettable area was fully leased, GIC said.

GIC manages Singapore's foreign reserves of more than US$100 billion and invests it globally in areas such as real estate and equity markets.

Its real estate arm has made big investments in neighbouring economies, buying hotels in Australia and commercial buildings in Seoul and Tokyo. - AFP