Tanco pledges RM250mil for first phase of PD free zone

KUALA LUMPUR: Tanco Holdings Bhd will provide financial assistance of up to RM250 million to fund land acquisition and development costs for the first phase of the Port Dickson Free Zone project, the company said in a share market filing today.

The financial assistance will be provided through shareholder advances and corporate guarantees, Tanco told Bursa Malaysia. It said the proposed acquisition involves a 121.41-hectare plot of freehold land in Pasir Panjang, Port Dickson, for RM88.5 million.

“The proposed provision of financial assistance will be in the form of shareholder advances to PDFZ Sdn Bhd (PDFZSB) in cash and corporate guarantees for banking facilities to be obtained by PDFZSB, if any.

“The composition of the shareholder advances and corporate guarantees of up to RM250 million cannot be determined at this juncture as it will depend on, among other factors, the amount of external financing secured by PDFZSB,” it said.

The proposed acquisition stems from a joint venture agreement in October 2024, between TLSB, an indirect 80%-owned subsidiary of Tanco, and Menteri Besar Negeri Sembilan Incorporated to jointly develop the PDFZ, an industrial park project comprising warehouses, factories and related infrastructure in Port Dickson.

To undertake the project, PDFZSB was incorporated in February 2025 as the joint venture vehicle, with TLSB and MBINS holding 80% and 20R% stakes respectively.

Tanco said that apart from the land acquisition cost, the project would require additional funding for development costs and MBINS’ entitlement under the joint venture arrangement.

It said MBINS is entitled to a share of returns from its stake in PDFZSB, which relates to its participation in the entire PDFZ project and not just the first phase.

Tanco noted that it would be entitled to returns generated from the project, less MBINS’ entitlement. Upon full settlement of MBINS’ entitlement, MBINS will transfer its entire 20% stake to TLSB for RM1 and relinquish its board representation, making PDFZSB a wholly owned subsidiary of TLSB.

In addition, Tanco said the project is intended to complement and support the proposed Midport Smart AI Container Port project, another strategic collaboration between MBINS and the group.

“Given the close proximity of both projects, the Group will be well positioned to benefit from growing demand for industrial properties from domestic and foreign businesses engaged in manufacturing, industrial, logistics, warehousing, import, export and gateway-related activities within the PDFZ Project,” it said.

Tanco added that the first phase of the PDFZ project is expected to contribute positively to the group’s financial performance through the development and sale of industrial lots with ready infrastructure, as well as the construction of factories and warehouses via its construction arm.

المصدر: Free Malaysia Today