Seksyen 15 Shah Alam Logistics Hub: GDB Wins RM877m Job to Replace a Factory With Two Five-Storey Buildings

Key Takeaways

• GDB Holdings Bhd's subsidiary has accepted an RM877 million main contract to demolish a factory at PT 845, Jalan 15/23, Seksyen 15, Shah Alam, and build two five-storey logistics hub buildings in its place.
• The works are scheduled for 34 months, from 4 November 2026 to 3 September 2029, so this project adds no new space in Seksyen 15 for almost three years.
• It is GDB's second large multi-storey logistics job in Seksyen 15, after an RM865.66 million warehouse contract in 2024, and it fits Shah Alam City Council's stated plan to encourage redevelopment of existing industrial areas in Seksyen 15 and 16.
• Land size, floor area, tenants and rents have not been disclosed, so the contract sum tells you nothing yet about land values or future rents.
• Owners of older plants, tenants whose leases end before 2029 and neighbours on the access roads each have something specific to check now.

What Happened

GDB Holdings Bhd told Bursa Malaysia on 3 November 2026 that its wholly owned subsidiary, Grand Dynamic Builders Sdn Bhd, had accepted a letter of award from Rochester Logistics Asset 2 Sdn Bhd. The letter is dated 30 October and was accepted on 2 November. The contract sum is RM877 million, including the prevailing 6% service tax.

The scope is the demolition of the existing factory and the construction of two new five-storey logistics hub buildings on PT 845, Jalan 15/23, Seksyen 15, 40200 Shah Alam. The Edge reports a 34-month programme starting on 4 November 2026, with completion targeted for 3 September 2029. The Sun adds that the project includes mezzanine-level offices, a three-storey cafeteria, a prayer room, restrooms and other supporting facilities.

GDB told The Malaysian Reserve that it has not built a logistics hub of this size before, and that this is its second industrial facility for a multinational developer. The company's statement did not name that developer. GDB plans to fund the job through internally generated funds and bank borrowings.

What has not been said matters just as much. The Edge notes that no further details on the land were provided. None of the reports we read gives the land area, the gross floor area, the price paid for the site, the factory's past occupier or any tenant.

Why This Matters for Seksyen 15

This is not a one-off. In June 2024, GDB accepted an RM865.66 million award from Strategic Sonata Sdn Bhd to build Plot B of a logistics hub, also in Seksyen 15: a five-storey ramp-up warehouse with offices and supporting facilities, scheduled to finish by December 2026. IJM Corp Bhd was awarded Plot A. A Companies Commission check reported by The Edge at the time showed Singapore's Mapletree Dextra Pte Ltd holding 70% of Strategic Sonata and Permodalan Nasional Bhd holding 30%. The new reports do not say whether Rochester Logistics Asset 2 is connected to that group, so we draw no link.

The direction also matches official policy. In a reply to the Selangor State Assembly at its November 2024 sitting, Shah Alam City Council (MBSA) said that for the five-year period it plans and will encourage redevelopment or rejuvenation of existing areas, especially Seksyen 15 and Seksyen 16, and will upgrade infrastructure in and around industrial areas. The example it gave was at Padang Jawa, where a site once known as CCM Chemical is now Global Vision Logistic.

Seksyen 15 has also lost long-running industry. Goodyear's 29.3-acre plant on Persiaran Selangor closed on 30 June 2024, affecting about 550 workers, and the land was put up for sale. The GDB filing gives a different address, and none of the reports we read connects the two sites.

Seksyen 15 is one of Shah Alam's original industrial sections (see our Seksyen 15 industrial area guide). Two projects are not a whole market, but the direction is clear enough to plan around: on some lots, single-user plants are giving way to logistics space stacked over several floors. Road links are a likely reason. The Federal Highway has a Klang-bound exit signposted to Section 15-16, and KESAS reaches the area through the Hicom interchange.

What the Registered Numbers Show

The RM877 million is a construction contract with tax included. It is not a land price, and it cannot be turned into a cost per sq ft because the floor area is undisclosed. For values, registered deals are the better guide:

These figures come from our Shah Alam transaction data. They are the records available so far, not every deal in the area, and every sale psf is per sq ft of land, never built-up. Six sales in two years is a thin sample, so treat the Seksyen 15 median as a rough marker. The same records show 119 factory tenancies in Shah Alam at a median of RM1.71 psf a month, RM1.50 psf for detached factories, with a typical term of 24 months.

What It Means for You

Owners of older factories in Seksyen 15 and 16

This job shows that at least one developer considered an existing factory worth knocking down and replacing. It does not set a price. Whether your lot could attract the same interest depends on land area, road width, tenure, title conditions and power supply, not on the address alone. The JPPH transfer register since 2010 records 61 industrial lots in Seksyen 15, 49 of them on 20,000 sq ft of land or more, with a typical plot of 2 acres. Nobody outside the project has said how much land this one uses, so a smaller lot should not assume the same buyers.

Tenants

This project offers no space before September 2029. A 24-month lease signed this month would end around November 2028, about 10 months before the target date, so it is not an option for your next renewal. If you need space now, you are choosing from what exists today: warehouses for rent in Shah Alam.

When multi-storey space does arrive, it will not suit everyone. Ground and upper floors can differ, so ask for the floor loading on each level, the ceiling height, ramp width and gradient for your longest vehicle, the number of loading bays per unit, the power supply and the service charge. Our floor loading calculator helps you compare a building against your racking or machines. If you run heavy machines or a process line, also confirm that the approved use allows manufacturing and not only storage.

Buyers

Few lots change hands here, so be careful about paying extra for "redevelopment potential" on an ordinary factory. Unless you have checked otherwise, price the building on what it does for your business today. Before paying more, read the title and land-use conditions, check the remaining lease and ask MBSA's planning department what may be built.

Smaller buyers should feel little change. Registered medians in Shah Alam are RM1.13 million for a terrace factory and RM5.92 million for a semi-detached factory, and those units serve different users from a five-storey logistics hub.

Neighbours around Jalan 15/23

Thirty-four months of demolition and construction will likely bring more lorries and dust near the site, and none of the reports describes a traffic plan. If you operate nearby, take dated photos of your boundary wall, drains and road frontage before work gets heavy, and leave some slack in your delivery schedule. Raise blocked access or damaged drains with the contractor first, then with MBSA if it is not resolved.

Practical Next Steps

1. Owners: pull your title, note the tenure, expiry and land-use conditions, and measure your land area and road frontage.
2. Owners thinking of selling: compare your lot with registered sales, not with this contract sum.
3. Tenants: put your lease end date next to September 2029. If it falls earlier, plan your renewal or move without this project.
4. Buyers: get the planning position from MBSA before paying for anything beyond the building itself.
5. Neighbours: take your dated photos this week, since works are scheduled to start on 4 November.

Frequently Asked Questions

What is being built on Jalan 15/23 in Seksyen 15, Shah Alam?

An existing factory on PT 845, Jalan 15/23, will be demolished and replaced by two five-storey logistics hub buildings. The project also includes mezzanine-level offices, a three-storey cafeteria, a prayer room and other supporting facilities. Grand Dynamic Builders, a subsidiary of GDB Holdings, is the main contractor under an RM877 million contract.

When will the Seksyen 15 logistics hub be completed?

The contract runs for 34 months, from 4 November 2026 to 3 September 2029. That is the contract's target date, not a promised move-in date. No leasing details have been announced, so occupiers should not plan on this space before then.

Who owns the new logistics hub in Seksyen 15?

The Bursa Malaysia filing names Rochester Logistics Asset 2 Sdn Bhd as the party that issued the letter of award. GDB also describes the job as its second industrial facility for a multinational developer, without naming the developer. The reports we read do not disclose any further ownership details or any tenants.

Does the RM877 million contract mean Seksyen 15 factories are worth more?

Not directly. The figure is a construction cost including 6% service tax, not a land price, and the price paid for the site has not been disclosed. JPPH recorded six sales in Seksyen 15 in the 24 months to August 2026, at a median of RM15.3 million or RM293 psf of land. That is a small sample, and each lot's value depends on its own size, title and access.

Will this project lower warehouse rents in Shah Alam?

It cannot affect the supply of space before it is finished, and the target date is September 2029. The floor area and asking rents have not been published, so its later effect cannot be measured yet. For today's budget, the registered median of RM1.71 psf a month across 119 Shah Alam factory tenancies in 24 months is the better guide.

FactoryHub is dedicated to helping every client find the right factory or warehouse. For factories and warehouses in Shah Alam, contact Peter Tan (REN 12771) at 016-666 6872 or Jason Low (PEA 1478) at 012-288 1834.