Paragon Globe targets RM2.1bn landbank growth in Johor via anchor-led development

KUALA LUMPUR, 24 SEPTEMBER 2026 —

Paragon Globe Bhd will expand its Johor landbank to RM2.1 billion by prioritising anchor tenants and selective land sales, with three key projects driving growth in Iskandar Puteri, Sedenak and Tanjung Kupang.

The developer’s strategy centres on creating ecosystems around major occupiers, Executive Chairman Datuk Seri Edwin Tan Pei Seng said in a statement. The approach contrasts with traditional land sales, instead focusing on long-term value through industrial and logistics clusters.

At PGB-GSP AutoPark in Iskandar Puteri, GSP Automotive’s manufacturing operations will anchor a planned RM1.69 billion industrial park, attracting suppliers and logistics firms. Paragon Globe expects the site to generate secondary demand for supporting businesses, though no further committed tenants were disclosed.

The group’s landbank expansion hinges on two major transactions. In July, it proposed acquiring 195.6 acres in Sedenak for RM127.28 million, adding to its existing holdings to reach 218.1 acres. The preliminary industrial park concept values the land at RM1.69 billion, with completion targeted for H2 2027, pending shareholder approval.

A second deal involves selling 26.42 hectares in Tanjung Kupang to DayOne Data Centers Malaysia III Sdn Bhd for RM398.11 million, announced in June. The transaction remains conditional.

Financials show strong momentum: Q1 2026 revenue surged 69.8% year-on-year to RM94.46 million, while profit attributable to shareholders rose 56.4% to RM24.94 million, reflecting the group’s shift toward higher-margin industrial and logistics assets.

The strategy aligns with Johor’s push to diversify beyond manufacturing, targeting logistics and data centre demand. With Iskandar Puteri’s 10% population growth and rising industrial land prices—now averaging RM120–RM150 per sq ft—Paragon Globe’s landbank plays into the state’s economic transition.

Analysts note the developer’s focus on anchor-led development reduces speculative risk, though execution depends on securing major tenants. The Sedenak and Tanjung Kupang projects, if approved, could add RM2.1 billion in gross development value to its pipeline by 2027.

Paragon Globe’s landbank strategy marks a pivot from residential-led growth, positioning it as a key player in Johor’s industrial and logistics expansion. The next milestone will be shareholder approval for the Sedenak acquisition, due by mid-2024.

Related: Paragon Globe Bhd · Datuk Seri Edwin Tan Pei Seng