“Paragon Globe secures 67.42 acres in Iskandar Puteri for a RM733M residential project, boosting growth in the Johor-Singapore SEZ starting in 2025.“
Kuala Lumpur, 13th Nov 2024, 1.00pm – Paragon Globe Bhd (KL) has secured the rights to develop 67.42 acres of prime land in Iskandar Puteri, Johor, with a projected gross development value (GDV) of RM733.12 million.
This development opportunity comes through an agreement between Paragon Globe’s subsidiary, Paragon Globe Properties Sdn Bhd (PGPSB), and Iskandar Capital Sdn Bhd (ICSB), according to the company’s Bursa Malaysia filing. The land includes two freehold parcels located near Jalan Ismail Sultan and Lebuh Kota Iskandar.
Set to mark Paragon Globe’s entry into the landed property market, the project will include 340 units, comprising 324 semi-detached homes, two bungalows, and 14 bungalow land lots. Construction is scheduled to start in 2025 and span seven years, with an estimated gross development cost of RM545.03 million, leaving an anticipated gross development profit of RM188.09 million.
To secure the exclusive development rights, PGPSB will pay ICSB RM102 million in installments, funded through a mix of internal funds and bank financing.
“We are committed to addressing housing demand in Iskandar Puteri, creating shareholder value, and aligning with sustainable development goals in the Johor-Singapore Special Economic Zone (JS-SEZ),” stated Paragon Globe executive chairman Datuk Seri Edwin Tan Pei Seng. He also emphasized the company’s focus on diversifying its property portfolio and establishing long-term growth in the sector.
In addition to this project, Paragon Globe also secured a 4.10-acre parcel along Jalan Marlborough from ICSB, with development plans in progress.
Paragon Globe’s recent ventures include a serviced apartment project in Johor Bahru, launched in partnership with Tropicana Danga Bay Sdn Bhd, with a GDV of RM1.49 billion and expected profit of RM334.45 million. This project will feature four 36-story towers with 2,552 serviced apartments.
For the first quarter ending June 30, 2024, Paragon Globe posted a net profit of RM5.73 million, a substantial turnaround from a net loss of RM826,000 in the same period the previous year, as revenue more than doubled to RM22.95 million.
Paragon Globe’s shares closed at 29 sen, down slightly, giving the company a market capitalization of RM220.3 million. The stock has risen by over 31% since the beginning of the year.
