KUALA LUMPUR (March 30): Construction and property company Paragon Globe Bhd (KL:PGLOBE) is partnering with Shanghai-listed GSP Automotive Group, via subsidiary GSP Automotive Malaysia Sdn Bhd, to develop an automotive industrial hub in Iskandar Puteri, Johor.

As the master developer, Paragon Globe will plan, manage and build the specialised, automotive-focused industrial cluster on 47 acres of its 109-acre Iskandar Puteri land bank, the company said in a filing with the bourse on Monday. They will aim for GreenRE certification to ensure the project meets high environmental and sustainability standards.

According to the strategic partnership collaboration agreement with GSP, Paragon Globe will also develop and lease two factory units to anchor tenant GSP, an automotive component supplier to more than 120 countries.

GSP plans to establish research and development centres, automated distribution hubs and manufacturing plants to create a fully-integrated automotive supply chain hub. It will also leverage its global network to bring international component manufacturers, suppliers and logistics into the industrial hub. 

Paragon Globe said the project marks a shift from just selling land to developing a full business ecosystem together with partners.

“We are no longer just developing industrial properties; we are architecting complete, high-value industrial ecosystems. The Johor-Singapore Special Economic Zone (JS-SEZ) presents a generational opportunity to position Iskandar Puteri as a regional hub for advanced manufacturing,” said executive chairman Datuk Seri Edwin Tan Pei Seng in a statement. 

Meanwhile, GSP chief executive officer Richard Zhou said that the project is expected to create employment opportunities and grow Johor’s automotive industry. 

“Looking ahead, GSP will continue to deepen its investment in Malaysia, working closely with partners and stakeholders to build a modern manufacturing base that contributes meaningfully to regional economic growth,” Zhou added.

Additionally, PGB will be partnering with United Overseas Bank (Malaysia) Bhd to provide project financing and operational banking solutions for GSP and its network.

According to AskEdge, the company’s price-to-earnings ratio is 5.7 times, the lowest among peers and in recent years, while its price-to-net-asset-value ratio is 1.2 times, which is higher than most peers and above its recent average.

Paragon Globe’s shares closed 2.13% lower to 69 sen per share earlier, valuing the property developer at RM511.54 million.