Paramount, Kumpulan Hartanah Selangor to develop RM1b GDV project in Petaling Jaya

PETALING JAYA: Paramount Corp Bhd, together with landowner Kumpulan Hartanah Selangor Bhd (KHSB), will undertake a residential development with an estimated gross development value (GDV) of RM1 billion in Petaling Jaya, Selangor.

In a filing with Bursa Malaysia, Paramount said its wholly owned unit Aneka Sepakat Sdn Bhd (ASSB) had inked a development rights agreement with KHSB for the proposed development on 9.66-acre land.

The proposed development will involve the construction of four blocks of high-rise residential buildings consisting of 1,600 units of residential properties, including 20% affordable units. It is expected to be completed within a period of 10 years commencing from 2018.

Paramount said the proposed development is line with its asset light strategy to enlarge its land bank at prime locations, particularly at strategic transit oriented development locations in the well-established Petaling Jaya city.

It will also provide the group with the opportunity to leverage on collaborations with landowners to scale up its property development activities to generate long-term sustainable income.

At a projected development cost of RM1 billion, Paramount said the expected profits to be derived from the development would be RM840 million. The development cost will be funded by a combination of internally generated funds and bank borrowings.

Paramount closed higher 1 sen or 0.57% to RM1.77 today with 50,400 shares traded.