PETALING JAYA (July 16): Paramount Corp Bhd (Paramount) is acquiring 4.54 acres of prime freehold land with buildings at Jalan Ampang Hilir, Kuala Lumpur, in the vicinity KL's Embassy Row for redevelopment. A 20-storey building with serviced suites and 132 low-rise condominium units are situated on the site.
The company announced today that Paramount Property (Cityview) Sdn Bhd (PPCV), a wholly-owned subsidiary of Paramount, entered into sale and purchase agreements with the subsidiaries of Singapore-listed Wing Tai Holdings Limited (WTHL), Seniharta Sdn Bhd and DNP Jaya Sdn Bhd, for two pieces of contiguous land measuring 0.95 acres and 3.59 acres for a total purchase consideration of RM243.8 million.
“This is Paramount’s first venture into property development in Kuala Lumpur and we are very excited about the prospects. This acquisition will enable Paramount to enhance our property development profile at a prime location in the heart of KL,” said Paramount Group CEO Jeffrey Chew.
Paramount intends to redevelop the properties into a premium high-rise residential development consisting of about 650 units with an estimated gross development value (GDV) of RM863 million to be generated from the proposed development over a period of five years.
"This is expected to further strengthen Paramount’s current total expected GDV of RM6.8 billion to RM7.7 billion, and contribute positively to future earnings,” Chew said.
The site located at the U-Thant enclave is surrounded by foreign embassies, high commissions, high-end residences, international schools and medical centres.
“The market prices for condominiums in the area are about 30% to 40% lower than those at the KLCC area. As such, Paramount’s proposed development would be an attractive address in the KL city and an alternative to properties at KLCC,” he added.
Chew said the development will have easy access to a catchment of expatriates in the area as well as the larger population of the Klang Valley which is expected to surpass 10 million by 2035.
“The acquisition is in line with our strategy of replenishing landbank at strategic locations with strong growth potential and to scale up our property development activities to generate long-term sustainable income.
“Demand for housing in the Klang Valley remains resilient due to population and economic growth. The value of residential property transactions in the Klang Valley was RM33.9 billion in 2019, accounting for nearly half the total of RM72.4 billion transacted in Malaysia that year,” Chew said.
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