Paramount to sell land in Selangor for RM92 million

PETALING JAYA: Paramount Corp Bhd is disposing two parcels of leasehold land measuring 9.4 acres in Mukim Pekan Baru Sungai Buloh, Selangor to EM Hub Sdn Bhd for RM92.1 million cash for new land acquisition and working capital use.
According to its latest audited accounts, the deal will bring in a gain of RM33.19 million for the group.
In a filing with Bursa Malaysia, Paramount said its wholly owned unit Seleksi Megah Sdn Bhd has entered into a sale and purchase agreement with EM Hub, which is in the business of property holding and construction, for the proposed land disposal.
Of the total proceeds, Paramount said it has allocated RM50 million for acquisition of land bank, RM40 million for working capital and the rest for the proposed disposal expenses.
It said the move provides the group an opportunity to unlock value of the land, utilise cash proceeds to acquire new land bank that is able to generate higher returns within a shorter turnaround time, improve cash liquidity for integrated developments and reduce bank borrowings.
Barring any unforeseen circumstances, it said the proposed disposal is expected to be completed by the third quarter of 2018.
Paramount’s share price gained two sen or 1.13% to RM1.79 today with 63,500 shares traded.