Paramount aims for RM714mil launches

Chew said the group remains bullish in its projects this year as it continues to look for opportunities to expand its wings.

KUALA LUMPUR: Paramount Corp Bhd aims to launch properties worth RM714mil in the second half of 2023 (2H23), says group chief executive officer and director Jeffrey Chew Sun Teong.

For 1H23, the real estate developer launched about RM820mil worth of properties, with sales at RM617mil.

“The group has unbilled sales worth RM1.5bil while the average take-up rate was 73% as at June 30, 2023,” he said during the group’s investor relations and media presentation on its first half of the year results yesterday.

He said the group was still selling properties that were launched last year, so there were spillovers in terms of sales from there.

According to Chew, The Ashwood, a high-rise residential development in Kuala Lumpur will drive the group’s goal for stronger launches because its location and offering was unique.

The Ashwood is situated in the prestigious U-Thant area, surrounded by foreign embassies and high-end residences, putting it in demand.

Chew added the other projects in the pipeline included a landed residential development in Sungai Petani, as well as the expansion of affordable landed homes in the same area.

“We are also embarking on a low-cost housing project called Greenwoods Amaria, a new township in Salak Perdana which we have to do despite us not making any money from it,” he said.

Chew said the group was happy with the amount of land at present but will continue looking for land to develop.

“We’ve had a few successful locations that we put ourselves in like Cyberjaya, it’s become a premier brand. We also had Arinna in Kemuning Utama which did quite well,” he said.

Chew said Klang is a new area that the group had ventured into.

“Klang is an area where we have to really make our presence felt. We have to ensure the first residence will do well, we’re also planning a commercial hub there in the hopes it will rejuvenate the place, enabling us to launch more over there,” he said.

Chew said the group remains bullish in its projects this year as it continues to look for opportunities to expand its wings.

In the first half, Paramount posted a higher net profit of RM35.7mil on a revenue of RM436.1mil.

“Our property division did commendably in 1H23, achieving a 16% rise in revenue at RM418.1mil (1H22: RM361mil) and an 80% improvement in pre-tax profit at RM70.3mil (1H22: RM39.1mil),” Chew said.

Its co-working division generated RM6.2mil in revenue, an increase of 44% year-on-year (y-o-y).

Paramount declared a three-sen interim dividend for financial year 2023. The single-tier interim dividend will be paid on Sept 21 to shareholders whose names appear on the record of depositors on Sept 11.

Benjamin Teo Jong Hian, who emerged as the group’s substantial shareholder with a 28.9% stake, said all the five co-working spaces recorded a y-o-y improvement in occupancy due to the continuous growth of the economy.

“The top three spaces in terms of revenue contribution included Shah Alam, Starling Mall and Naza Tower,” he said. He added adoption of these spaces was from enterprises and the corporate sector, a result of the hybrid working condition post-Covid-19 era.

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