South Korea’s Daelim Industrial Company is set to develop a 500-hectare residential town in Tehran, Iran, at an investment of around €900 million ($1.06 billion), said a report.

The investment will be a major boost to the new township of Kharazmi about 50 km southeast of the Iranian capital, reported thePress TV.

The city is being built as part of satellite towns which are being developed to ease congestion in the Iranian capital of about 12 million, said the report citing officials from Iran’s Ministry of Roads and Urban Development.