PETALING JAYA (May 30) — Tanco Holdings Bhd is moving forward with plans to establish a major industrial and logistics hub in Port Dickson, seeking shareholder approval to acquire a 300-acre freehold land parcel for RM88.5 million and provide up to RM250 million in funding support for the first phase of the proposed Port Dickson Free Zone (PDFZ).
According to a Bursa Malaysia filing dated May 29, the acquisition will be undertaken through PDFZ Sdn Bhd (PDFZSB), an 80%-owned subsidiary of Tanco. The land, measuring approximately 121.41 hectares in Mukim Pasir Panjang, Port Dickson, will be purchased from SD Guthrie Bhd at RM6.77 per sq ft.
The site represents the initial 300-acre phase of the larger PDFZ development, strategically located within the Malaysia Vision Valley 2.0 (MVV 2.0) growth corridor and close to the proposed Midport Smart AI Container Port.
To support the land purchase and development activities, Tanco is proposing to extend financial assistance of up to RM250 million to PDFZSB through shareholder advances and corporate guarantees. Both the acquisition and financing proposals are subject to shareholder approval at an upcoming extraordinary general meeting.
PDFZSB is jointly owned by Tanco Land Sdn Bhd, a wholly owned subsidiary of Tanco, and Menteri Besar Negeri Sembilan (Incorporated) (MBINS), which hold 80% and 20% stakes respectively.
The first phase of the project is planned as a five-year industrial park development featuring infrastructure works, warehouses, factory buildings and subdivided industrial lots. Tanco estimates the phase will generate a gross development value (GDV) of approximately RM350 million, with a gross development cost (GDC) of around RM243 million, including land acquisition costs.
An independent valuation conducted by Henry Butcher Malaysia NS Sdn Bhd assessed the land at RM89 million as of March 10, 2026, slightly above the proposed purchase price.
Under the joint venture arrangement, MBINS is entitled to receive RM30 million over time. Once this entitlement is fully settled, MBINS will transfer its entire 20% stake in PDFZSB to Tanco Land for RM1, making PDFZSB a wholly owned subsidiary of Tanco.
On a pro forma basis, assuming 85% of the acquisition cost is financed through borrowings, Tanco’s gearing ratio is expected to increase from 0.13 times to 0.34 times, while net assets per share are projected to remain unchanged at seven sen.
The company noted that no development application has been submitted for the land as of April 30, 2026. Regulatory approvals and planning submissions will be pursued after the acquisition is completed.
Tanco believes the proposed development will strengthen its presence in the industrial and logistics property sector while positioning the group to benefit from growth opportunities driven by MVV 2.0, the New Industrial Master Plan 2030 and Malaysia’s expanding manufacturing ecosystem.
Key Takeaways
Tanco plans to acquire 300 acres of freehold land in Port Dickson for RM88.5 million.
The land forms the first phase of the proposed Port Dickson Free Zone (PDFZ).
The company is seeking approval to provide up to RM250 million in funding and guarantees for project development.
Phase 1 is expected to deliver an industrial park comprising warehouses, factories and industrial lots over a five-year period.
The development carries an estimated GDV of RM350 million and GDC of RM243 million.
PDFZ is located within the MVV 2.0 corridor and near the proposed Midport Smart AI Container Port.
Tanco aims to expand into the industrial and logistics property segment and capitalize on Malaysia's manufacturing and logistics growth initiatives.
Upon fulfilling MBINS’ RM30 million entitlement, Tanco will gain full ownership of PDFZSB.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 30 May 26
Malaysia