KUALA LUMPUR (Sept 1): Paramount Corp Bhd is buying a parcel of freehold residential land measuring approximately 13.25 hectares in Selangor for RM102.69 million.
Paramount said in the bourse filing that its wholly-owned subsidiary Utropolis Sdn Bhd has entered into a sale and purchase agreement with Makmur Asiamaju Sdn Bhd for the proposed land acquisition.
The land is within a kilometre radius of Paramount’s Sejati Residences and Sejati Lakeside. It is a 35-minute drive from Kuala Lumpur city centre or 25 minutes from Kuala Lumpur International Airport (KLIA), and only 10 minutes from Putrajaya via major highways.
“Paramount has a solid reputation in Cyberjaya. We hope to replicate the success of these two developments and the timing couldn’t be better. We are building on the strong momentum of Sejati Lakeside as we target to launch its final phase comprising three-storey lakefront semi-detached homes in the fourth quarter of this year,” said Paramount deputy group chief executive officer Benjamin Teo in a separate statement.
Teo added the development of the new piece of land is expected to generate a gross development value (GDV) of RM319.8 million over six years, which would strengthen the group’s current GDV of RM7.6 billion and contribute positively to future earnings.
The acquisition is in line with Paramount's strategy of replenishing its land bank at locations with strong growth potential and of scaling up its property development activities to generate long-term sustainable income, the company said in the filing.
The landed residential development is also in line with Paramount’s strategy of balancing its property development profile with a mix of different types of products to cater to different market demands, it added.
The land purchase will be funded through a combination of internally generated funds and bank borrowings.
Paramount’s share price was unchanged at 78 sen today, valuing the group at RM482.97 million.