Mexican home builder Corporacion Geo SAB (GEO.MX) and a unit of Prudential Financial Inc. (PRU) said Wednesday they will invest in large housing projects under a 10-year joint venture.

In a filing with the Mexican Stock Exchange, the two firms said the first project involves an initial investment of $110 million to build 18,000 homes on 360 hectares in the northern city of Tijuana.

Geo said it will build 80% of the homes, while land will be sold to other builders for the construction of the remaining houses.

Under a separate joint venture agreement, Prudential Real Estate Investors has invested 5.8 billion pesos ($426 million) over the last six years to purchase land for 84 Geo projects.

Geo's B shares fell 0.6% Wednesday to close at MXN24.43.

-By Ken Parks, Dow Jones Newswires, 52-55-5001-5723, ken.parks@dowjones.com