Dec. 19 (Bloomberg) -- UEM World Bhd., overseeing Malaysia's biggest property project in the southern state of Johor, agreed to build luxury homes valued at 1.5 billion ringgit ($448 million) at the development with Dubai World.

The company's UEM Land Sdn. unit agreed to form a joint venture with Limitless Holdings Pte, a unit of Dubai World, to develop the project at Puteri Harbour on the southwest tip of Malaysia, it said in a statement today in Kuala Lumpur.

``We aim to attract the rich and famous, the `fashionistas' as well as the well-heeled'' from the region, Wan Abdullah Wan Ibrahim, managing director of UEM Land, said in a speech.

Malaysia's government has eased investment rules for foreign companies to help woo 382 billion ringgit to the Johor region in two decades. The Puteri Harbour, north of Singapore, is part of a new city called Nusajaya being developed by UEM that includes homes, offices, a hospital and a university.

The two companies, through the joint venture called Haute Property Sdn., will build luxury homes and condominiums on 111 acres of land in Puteri Harbour, a waterfront and marina development, UEM said. Dubai World will own 60 percent of Haute and UEM the rest.

Dubai World is the state-owned investment group that earlier this year formed a joint venture with City Developments Ltd., Singapore's second-largest developer, to build a $1.7 billion project in the city-state.

French Riviera

Puteri Harbour, to be fashioned after the French Riviera, is located on 688 acres at UEM's Nusajaya township, which is within the Iskandar Development Region, the name of the Johor investment zone, UEM said.

Iskandar is three times larger than Singapore, but its residents earn $14,790, only half as much, according to the zone's Web site. Malaysia's government is redeveloping the area to promote growth and make residents richer.

Work on the luxury homes will begin in the second half of next year and the project will be completed in 2013, UEM said. UEM and Limitless may use a combination of cash and debt to fund the project, UEM said.

To contact the reporter on this story: Angus Whitley in Kuala Lumpur at awhitley1@bloomberg.net

Last Updated: December 19, 2007 04:29 EST