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KUALA LUMPUR (March 18): Paramount Corp Bhd (KL:PARAMON) is acquiring a 3.7-acre freehold commercial land parcel along Jalan Ampang from IOI Properties Group Bhd (KL:IOIPG) for RM257.9 million, which it plans to develop into two blocks of high-end serviced apartments with an estimated gross development value (GDV) of RM1.1 billion.
The acquisition was carried out via the wholly owned Meridian Kuasa Sdn Bhd, the group said in a statement on Wednesday. The site is currently vacant and located within the Jalan Ampang–Kuala Lumpur city centre corridor, surrounded by established residential and commercial developments.
Group chief executive officer Jeffrey Chew said the purchase builds on Paramount’s existing presence in the area, following the successful launches of The Ashwood and The Atrium, both of which were fully taken up.
“The proximity allows us to leverage our familiarity with the location and the strong market reception of our earlier developments to deliver another well-positioned residential offering,” he said.
IOI Properties group CEO Datuk Lee Yeow Seng said the disposal is in line with the group's strategy to further focus on developing its integrated townships and developments. "Monetisation of undeveloped land forms part of the group’s overall strategic transformation plan to balance the revenue portfolio, and the proceeds will enhance the group's capital deployment," he said.
The development is targeted for launch by end-2026, with an estimated six-year completion target. The acquisition will be funded through a combination of internal funds and bank borrowings, said Paramount.
Paramount shares closed one sen or 0.98% lower at RM1.01 on Wednesday, giving it a market capitalisation of RM629 million.
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