Paramount buys Cyberjaya land for RM149.7m to develop residential project

KUALA LUMPUR (Jan 12): Paramount Corp Bhd is buying 41.41 acres of land in Cyberjaya for RM149.71 million to build a gated and guarded landed residential development. 

The group’s wholly-owned subsidiary Paramount Property (Lakeside) Sdn Bhd is buying the freehold land from Makmur Asiamaju Sdn Bhd (MASB), which is jointly owned by Areca Holdings Sdn Bhd (70%) and Setia Haruman Sdn Bhd (30%). 

"The proposed acquisition is in line with our strategy of replenishing our landbank at locations with strong growth potential," Paramount said in a filing with Bursa Malaysia today.

The group had also developed the high-end Sejati Residences that sits within a kilometre of the land being acquired. 

The strategic location will enable Paramount to replicate the success of Sejati Residences, which has achieved a 90% take-up rate to date, and to capitalise on existing manpower from the earlier project, the filing said.

The group expects to see a shorter turnaround period for the proposed development, with the RM570 million gross development value to be generated over a period of six years. 

The cash consideration for the acquisition, which was calculated on a willing-buyer willing-seller basis, is to be funded via a combination of internally-generated funds and bank borrowings, Paramount said.

The acquisition is not expected to have any effect on the group's net assets per share and gearing for its financial year ending Dec 31, 2018 (FY18), although it is expected to be completed in the third quarter of this year, the filing added.

The acquisition is subject to approval by the Economic Planning Unit and the Selangor state authority, but not the shareholders of Paramount.

Shares in Paramount closed up 4 sen or 2.13% today at RM1.92, giving the group a market capitalisation of RM814.65 million. —

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