Paramount snaps up land in Kulim for RM128.7m, to develop RM946m township

• Located about four kilometres north of Phase 4A of the Kulim Hi-Tech Park (KHTP), Paramount said the acquisition will enable it to tap into KHTP’s expansion plans and Kulim’s potential population growth to launch a new township with residential, commercial and industrial properties, along with amenities.

KUALA LUMPUR (Aug 8): Paramount Corp Bhd (KL:PARAMON) is buying four freehold land parcels in Bandar Lunas, Kulim—totalling 295.55 acres—for RM128.74 million. The land will be developed into a township with an estimated gross development value (GDV) of RM946 million.

In a bourse filing on Friday, the property developer said its wholly-owned unit, Paramount Property (Seaview) Sdn Bhd, has signed a sale and purchase agreement with Golden Bluechip Sdn Bhd for the proposed acquisition.

Located about four kilometres north of Phase 4A of the Kulim Hi-Tech Park (KHTP), Paramount said the acquisition will enable it to tap into KHTP’s expansion plans and Kulim’s potential population growth to launch a new township with residential, commercial and industrial properties, along with amenities.

The township project boosts the group’s total GDV to RM5.49 billion.

The company said it will decide the development cost after finalising the detailed plan.

The cost will be funded through a mix of internal funds and bank loans, with the final split to be determined later based on its debt level, interest rates and cash flow needs.

“With Kulim’s prominence, infrastructure connectivity and investment inflows, this acquisition is in line with our strategy of replenishing land banks in strategic locations with strong growth potential,” Paramount Group chief executive officer Jeffrey Chew said in a statement.

Barring unforeseen circumstances, the acquisition is expected to be completed within 12 months, with development starting within a year thereafter and finishing in about seven years.

Paramount has been making headlines recently, having announced last month that it was acquiring a 28% stake in Singapore Exchange-listed Envictus International Holdings Ltd—the operator of Texas Chicken and San Francisco Coffee in Malaysia—for S$38.33 million (RM126.32 million) in cash—from JAG Capital Holdings Sdn Bhd.

JAG Capital, in which Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani holds a 96% stake, currently owns 29.6% of Envictus.

Last month, the company bought a freehold plot in Bandar Cassia, Penang, for RM57.84 million. It plans to develop the land into a mixed project with an estimated gross development value (GDV) of RM744 million.

Shares in Paramount ended unchanged at RM1.08 on Friday, giving the company a market capitalisation of RM672.6 million.

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