Paramount buys Cyberjaya land for RM570 million GDV project

PETALING JAYA: Paramount Corp Bhd is buying a piece of freehold residential land measuring approximately 41.406 acres in Cyberjaya, Selangor for RM149.7 million to embark on a property project with a gross development value (GDV) of RM570 million.
In a Bursa Malaysia filing, Paramount said its wholly-owned subsidiary Paramount Property (Lakeside) Sdn Bhd has entered into a sale and purchase agreement (SPA) with Makmur Asiamaju Sdn Bhd (MASB), which is in the business of property development, for the proposed acquisition.
Paramount said the land has been approved for a stratified landed residential development, comprising 418 residential units pursuant to a development order dated Feb 24, 2014 granted by Majlis Perbandaran Sepang to MASB.
With a projected RM570 million GDV to be generated from this development over a period of six years, Paramount said the proposed acquisition will further strengthen the group's current total GDV of RM8.6 billion and contribute positively to its future earnings.
Furthermore, the group said the acquisition is in line with its strategy of replenishing its land bank at locations with strong growth potential and to scale up its property development activities to generate long-term sustainable income.
Barring any unforeseen circumstances, it said the proposed development is expected to commence next year, while the proposed acquisition is expected to be completed within nine months from the date of the SPA.
The purchase consideration will be funded through a combination of internally generated funds and bank borrowings.
Paramount closed four sen or 2.13% higher at RM1.92 with some 363,500 shares traded.