KUALA LUMPUR: Paragon Globe Bhd
(PGB) has proposed to acquire two parcels of freehold land in Plentong, Johor Bahru, Johor for RM34.96 million.
In a filing with Bursa Malaysia, PGB said its wholly-owned subsidiary, Paragon Business Hub Sdn Bhd, today signed a conditional sale and purchase agreement (SPA) with EKL Holdings Sdn Bhd for the acquisition of the proposed Lands D, measuring 4.48 hectares (ha) and 3.33ha respectively.
The development of Lands D together with two plots of lands acquired by the group previously is expected to entail the proposed development of 64 units of terrace factories, 20 units of semi-detached factories and five units of detached factories.
The proposed development is expected to commence in March 2025 and is slated to take three years to complete.
The estimated total gross development value of the proposed development is RM293.52 million, whilst its gross development cost is expected to be RM226.72 million.
"Accordingly, the group is expected to derive an estimated gross development profit of RM66.80 million over the duration of the proposed development,” PGB said.
The Lands D purchase consideration is expected to be funded via a combination of
internally generated funds, bank borrowings and/or equity fund-raising.
PGB said the proposed Lands D acquisition represents an opportunity for the company to accumulate strategic land for property development and/or investment purposes, as the acquired lands are situated in an emerging prime location with positive industrial development potential.
The proposed Lands D acquisition would be further enhanced by improving infrastructure and strengthening security aspects of the city that have good potential to be developed into a metropolis.
The group is expected to have a landbank of 125.4ha upon completion of the proposed Lands D acquisition.
Subject to the required approvals being obtained, the proposed Lands D acquisition is expected to be completed within six months from the date of the SPA. - Bernama
