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- In a bourse filing, the group said the acquisition will allow it to launch development swiftly, as approvals have already been secured. The land carries a projected gross development value (GDV) of about RM579 million, to be realised over six years.
KUALA LUMPUR (Dec 17): Paramount Corporation Bhd (KL:PARAMON) has announced the acquisition of 48.49 acres of leasehold land in Section U9, Shah Alam, Selangor for RM113.5 million.
In a bourse filing, the group said the acquisition will allow it to launch development swiftly, as approvals have already been secured. The land carries a projected gross development value (GDV) of about RM579 million, to be realised over six years.
The land comprises three contiguous parcels with a 99-year lease expiring on Dec 27, 2108, and was transacted at RM53.74 per sq ft.
The purchase was made through its wholly owned subsidiary Prima Kuasa Sdn Bhd from SJ Properties Sdn Bhd, a unit of Sharikat Permodalan Kebangsaan Bhd.
Paramount said the acquisition is in line with its strategy of replenishing its land bank in strategic growth locations where it has established a strong track record.
The group highlighted its strong presence in Shah Alam over the past two decades, citing developments such as the 524-acre Kemuning Utama township, the 20-acre Utropolis Glenmarie integrated project, and the 30-acre Sekitar26 Enterprise commercial hub.
The gross development cost has yet to be determined, pending finalisation of the detailed development plan.
Funding for the purchase and development will be via a mix of internally generated funds and bank borrowings, with the final structure to be determined based on gearing levels, interest costs, and operational cash requirements.
The acquisition is expected to be completed within 12 months from the agreement date.
Paramount said, including the latest project, its total GDV of ongoing and upcoming projects now stands at RM5.04 billion.
Shares in Paramount closed up one sen or 1.02% at 99 sen on Wednesday, valuing the company at RM616.54 million. Year to date, the stock has declined 5.7%.
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