KUALA LUMPUR (Oct 17): Tanco Holdings Bhd is teaming up with a Hong Kong-based private equity firm to jointly develop its 400-acre sea-fronting integrated resort development in Port Dickson to be known as Dickson Bay.

In a filing today, Tanco said its unit Palm Springs Development Sdn Bhd has signed an agreement with the Hong Kong firm, Evergreen Offshore Inc, for the proposed collaboration.

Evergreen manages the Asia Pacific One Belt One Road Tourism Industry Fund amounting to HK$10 billion (RM5.44 billion), which was set up with a long-term vision to promote the tourism sector in countries along the 21st Century Maritime Silk Road to target the tourism sector in countries such as Malaysia.

"Based on the existing strong bilateral relations between China and Malaysia, supported strongly by the evident growth of Malaysia's tourism industry and the government's plan to boost investment to develop the sector, Evergreen has decided to debut the fund in Malaysia to further boost the relationship by investing in Malaysia's tourism sector for long-term gains," Tanco said.

Evergreen has allocated HK$2 billion to invest in Malaysian projects ahead of its other target markets, including Thailand and Vietnam.

Tanco’s share price closed unchanged at six sen today, for a market capitalisation of RM20.66 million.