Paragon Globe clinches RM11.48m Johor land deal to develop affordable housing

• Situated along Jalan Besar in Simpang Renggam, the land is strategically located near the North-South Expressway and surrounded by established residential, commercial and industrial zones.

KUALA LUMPUR (Oct 14): Paragon Globe Bhd has proposed the acquisition of three parcels of land in Simpang Renggam, Johor, worth RM11.48 million in a related-party transaction involving its executive chairman Datuk Sri Edwin Tan Pei Seng and Datuk Seri Godwin Tan Pei Poh. 

According to a bourse filing on Monday, the group plans to undertake an affordable housing development on the site. The 11.84ha tract will be acquired from Common Development (M) Sdn Bhd, a company which is jointly owned by Edwin and Godwin, who hold 65% and 35% equity stakes respectively. 

The transaction is expected to be completed within nine months from the signing of the sale and purchase agreement.

The purchase consideration will be financed through a combination of internally generated funds and/or bank borrowings, with the final funding structure yet to be determined.

Situated along Jalan Besar in Simpang Renggam, the land is strategically located near the North-South Expressway and surrounded by established residential, commercial and industrial zones. The company said the area’s accessibility and surrounding infrastructure make it suitable for affordable housing development.

Paragon Globe intends to develop the land under the Johor affordable housing programme, in accordance with Johor Housing Development Corp (PKPJ)’s planning and design standards.

Paragon Globe is of the view that the acquisition would expand its project portfolio, balancing its residential, industrial and affordable housing segments while enhancing revenue diversity and supporting sustainable growth.

The group noted that the acquisition aligns with Johor’s affordable housing agenda, driven by steady population growth, urbanisation and ongoing government efforts to promote home ownership among low- and middle-income groups. It said the proposed development is well positioned to meet demand for quality, accessible housing while contributing to balanced regional development.

Paragon Globe expects the acquisition to create new development opportunities, strengthen earnings visibility and reinforce its position as a trusted development partner of the Johor state government. The board expressed confidence that the move will enhance the group’s presence in the Johor property market, support inclusive growth and contribute positively to long-term profitability and shareholder value.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.