Temasek Holdings Pte, Singapore’s state-owned investment company, said it formed a joint venture with Impulsora Mexicana de Desarrollos Inmobiliarios to invest in land and real estate in Mexico.

The partners will invest a total of US$200 million ($272.6 million) in the venture, which will formally start this quarter, according to an e-mailed statement from Temasek.

Temasek opened offices in Mexico City and Sao Paulo two years ago to invest in Latin America. The venture with Impulsora Mexicana de Desarrollos Inmobiliarios, a developer of raw land based in the state of Queretaro, will seek opportunities to buy land that can be used for planned housing as Mexico’s middle-income population grows, Temasek said.

“Mexico’s transforming economy provides opportunities for Temasek to expand its investments in sectors such as real estate,” Lorenzo Gonzalez Bosco, Temasek’s managing director of investments in Mexico, said in the statement. “The rising middle-income population also provides a foundation for Mexico’s long-term growth.”