SHAH ALAM: Paramount Corp Bhd
is targeting RM1.2bil in sales in 2026, supported by its largest project this year – U-Thant Enclave, a high-rise development located in Kuala Lumpur.
This project is expected to be launched in the second half of this year.
Group chief executive officer Jeffrey Chew said despite the project not being launched yet, the company is confident that it will sell well.
“We expect RM300mil in sales from the booking of this project in the last two months of the year.
“Just 600 metres away is our other project, The Atera, which is 100% sold despite construction being at approximately 28% only so far.
“Today, it is very hard to find high-rise residences that can sell so fast,” he said during a press briefing after the group’s annual general meeting yesterday.
He said while prices for about 80% of raw materials were locked in for the project, he anticipates an approximately 10% increase in construction costs.
“This will be factored into prices because as we know, the Middle East war has caused some concerns overall,” he said.
According to Chew, the group still has RM1.5bil in unbilled sales.
They also have a current land bank with a gross development value (GDV) of RM3.3bil as at December 2025.
“This excludes the six sales and purchase agreements that we signed and is pending documentation. We’re targeting about RM4bil from these newly signed ones.
“Therefore, in total, the GDV in hand is approximately RM10bil,” he said.
Far from sitting on their laurels, the group is looking to add in another RM2bil, which will be a new benchmark for the group.
Chew said the land they’re looking at will most likely be in the northern region or the Klang Valley.
“We see a lot of opportunity in these two areas, so we’ll focus on that.
“We’ve got no intention at this stage to buy land outside of the region yet,” he said.
Chew was also responding to whether there was a possibility the group might look at venturing further within the region or abroad.
Paramount had previously invested RM38.7mil in the form of debt and equity in Navarang Charoennakhon Co Ltd from 2020 to 2025.
It was a 49% joint venture investment, and the project was completed in April 2024 in Bangkok.
However, the group posted a loss of RM400,000 for financial year 2025 (FY25).
“Unfortunately, this project faced a series of challenges over time. It started off with the onset of Covid-19.
“Despite having about 70% in bookings, by the time Covid-19 was over, most of the tourists, especially from China had stepped back,” he said.
Chew explained that in Thailand, buying a property operated differently to Malaysia – in Thailand, a buyer does not need to pay a balance until possession of the home.
“There were also a lot of issues surrounding scammers in Cambodia, which spilled over to Thailand.
“An earthquake further deteriorated the property market. So, there was a lot of friction,” he said.
“Needless to say, we’ve learnt our lesson with that, and we now see that as a foreign developer, it can be very hard to succeed without a strong local party.”
Chew reckons that a joint venture with credible partners is very much needed to build in another country, particularly ones that are willing to bear risks.
“Property is very much a local business. Even if we were to go into Sabah and Sarawak, we would be considered foreigners,” he pointed out.
Meanwhile, as part of the group’s medium-term plan, Paramount will aim to give shareholders a return on equity of 10% by 2030.
Chew said Paramount’s core business which is the property segment will remain its largest contributor to its earnings, but the group will also look at diversifying its earnings base and monetising its non-core assets.
Chew explained they were also looking at ways to improve yields.
“For instance, last year we acquired a 28% stake in Singapore-listed Envictus International Holdings Ltd, as it had fit with our strategic plans. Texas Chicken is its main profit contributor.
“We also successfully disposed of our tertiary campus in Jalan Anson as well as hostel in Penang,” he said.
The group’s co-working spaces have also been relatively stable, bringing in a revenue of RM16mil for FY25.
The group recently opened its newest space in Nu Sentral Mall, with an anticipated four new openings this year.
“Two out of the four centres will be enterprise-driven, which means one multinational company or enterprise will take the entire venue up.
“So in effect, we have 100% occupancy from day one.
“This year, we fully expect the business to return to profitability,” Chew said.
He added that Paramount is eyeing double-digit growth in profits this year.
