Share
KUALA LUMPUR (March 5): Paramount Corp Bhd (KL:PARAMON) is aiming for higher property sales this year and is confident that its margins will withstand cost pressures amid Middle East tensions.
The property developer is targeting RM1.2 billion sales this year and expects no delays to its planned launches worth RM1.1 billion in 2026, Paramount chief executive officer Jeffrey Chew said at an earnings briefing on Thursday. Paramount sold RM1.03 billion worth of properties in 2025.
“Our inputs are generally local,” he said. “There could be indirect cost escalation, but the direct impact on our business is not significant because our buyers are still Malaysians and they will still need homes.”
The bulk of the sales achieved last year were residential properties at 89%, while commercial properties only contributed 11%. Top sales were the transit-oriented development The Atera, located near the Asia Jaya LRT station in Petaling Jaya, and the luxury development The Ashwood in Kuala Lumpur.
Last year, Paramount launched five projects worth RM808 million in gross development value combined in Penang, Kedah and Selangor. The company has eight ongoing developments though three projects—Berkeley Uptown, Greenwoods Salak Perdana and Sejati Residences—did not perform well in terms of take-up rate, registering less than 50%.
“We have already set up a task force from cross-functional teams to explore how we can turn things around and make it punch above our weight,” Chew added.
For the full year 2025, revenue at Paramount fell 9% to RM946.87 million though net profit was up by 16% to RM118.82 million thanks to gains from the disposal of its Anson Campus for RM75 million as well as share of profits from the newly acquired Envictus International Holdings Ltd.
No special dividend from asset monetisation
At the briefing, Chew said Paramount does not plan to declare a special dividend despite ongoing efforts to monetise its non-core assets, as the proceeds will be redeployed into higher-return projects.
The group currently holds about RM900 million worth of such assets, which generate relatively low returns of about 1% ROE (return on equity), he said.
This includes two tertiary education campuses—University of Wollongong Malaysia Sdn Bhd and UOW Malaysia KDU Penang University College Sdn Bhd, as well as Mercure Kuala Lumpur Glenmarie hotel and Utropolis Marketplace mall.
“There was a question raised: once we finish monetising our assets, where will the profit go? We do not intend to use the proceeds from asset monetisation to pay back to shareholders. We want to reinvest it into property development, which can generate higher returns compared with the low ROE we are getting now,” he said.
The group’s ROE has been rising in recent years, reaching 8.3% for FY2025. Chew said the group is targeting 9% ROE this year.
“For FY2030, we are confident of reaching 10%, or even higher,” he added.
Unlock Malaysia’s shifting industrial map. Track where new housing is emerging as talents converge around I4.0 industrial parks across Peninsular Malaysia. Download the Industrial Special Report now.
