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PETALING JAYA (June 24): Paragon Globe Bhd’s wholly owned subsidiary PGB Landmark Sdn Bhd has entered into a conditional sale and purchase agreement with DayOne Data Centers Malaysia III Sdn Bhd to dispose of two parcels of freehold land in the Mukim of Tanjung Kupang, Johor Bahru, for RM398.11 million cash.
The parcels, with a combined area of about 26.42ha, are currently vacant. According to the Bursa filing yesterday, the proposed disposal forms part of the group’s strategy to optimise its landbank portfolio through the selective monetisation of certain land assets.
The company said the disposal would provide an opportunity to realise the value of the land for cash while strengthening its financial flexibility to support its funding requirements and facilitate the execution of its strategic priorities moving forward.
The proposed disposal is expected to result in an estimated pro forma gain of RM189.72 million and reduce gearing from 0.73 times to 0.40 times. Proceeds are intended for ongoing projects, infrastructure works on the disposal lands, future landbank and property acquisitions, repayment of borrowings, tax obligations and working capital.
The proposed disposal is subject to shareholder approval and other conditions precedent, with completion expected in the second half of 2027 if all conditions are met.
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