Paragon Globe sells more Johor land for RM99mil

PETALING JAYA: Paragon Globe Bhd is selling another piece of land in Plentong, Johor, to Bridge Data Centres Malaysia VI Sdn Bhd for RM98.98mil cash.

In a filing with Bursa Malaysia, Paragon noted the 19.759 acres of freehold land was held by its wholly owned subsidiary Paragon Business Hub Sdn Bhd (PBHSB).

In early May, PBHSB had sold 47.85 acres to Bridge for RM238.32mil cash.

Paragon added the latest land disposal is not expected to result in it becoming a cash company and/or a Practice Note 17 company under the Listing Requirements of Bursa Securities.

Bridge is principally involved in providing infrastructure for hosting, data processing services and related activities.

CBRE WTW Valuation & Advisory Sdn Bhd had put a market value of RM106.3mil on the land following a valuation carried out on July 17 2024, the filing stated.

Paragon stated the proceeds gained for the sale of the two land parcels to Bridge will be utilised as working capital, to fund ongoing projects and land deals, repay borrowings as well as development costs for the two blocks of lands sold.

The group is expected to record an estimated gross pro forma gain and net pro forma gain of RM148.56mil and RM112.9mil, respectively, from the combined sale of the two parcels of land to Bridge, Paragon said.