PETALING JAYA, 16 July 2020: Paramount Corporation Berhad (Paramount) is acquiring for redevelopment 4.54 acres of prime freehold land with buildings at Jalan Ampang Hilir, Kuala Lumpur, in the vicinity of what is popularly known as the Embassy Row. A 20-storey building with service suites and 132 units of low-rise condominiums are situated on the land.
Paramount Property (Cityview) Sdn Bhd (PPCV), a wholly-owned subsidiary of Paramount, today entered into sale and purchase agreements with the subsidiaries of Singapore-listed Wing Tai Holdings Limited (WTHL), Seniharta Sdn Bhd and DNP Jaya Sdn Bhd, for two pieces of contiguous land measuring 0.95 acres and 3.59 acres for a total purchase consideration of RM243.8 million.
Paramount Group Chief Executive Officer Jeffrey Chew said, “This is Paramount’s first venture into property development in Kuala Lumpur and we are very excited about the prospects. This acquisition will enable Paramount to enhance our property development profile at a prime location in the heart of KL.”
He said Paramount intends to redevelop the properties into a premium high-rise residential development consisting of about 650 units of condominium.
“The estimated gross development value (GDV) of RM863.0 million to be generated from the proposed development over a period of five years is expected to further strengthen Paramount’s current total expected GDV of RM6.8 billion to RM7.7 billion, and contribute positively to future earnings,” he said.
The site located at the prestigious U-Thant enclave of Kuala Lumpur is surrounded by foreign embassies, high commissions, high-end residences, international schools and medical centres.
“The market prices for condominiums in the area are about 30% to 40% lower than those at the KLCC area. As such, Paramount’s proposed premium residential development would be an attractive address in the KL city and an alternative to properties at KLCC,” he said.
Chew said the development will have easy access to a catchment of expatriates in the area as well as the larger population of the Klang Valley which is expected to surpass 10 million by 2035.
“The acquisition is in line with our strategy of replenishing land bank at strategic locations with strong growth potential and to scale up our property development activities to generate long term sustainable income.
“Demand for housing in the Klang Valley remains resilient due to population and economic growth. The value of residential property transactions in the Klang Valley was RM33.9 billion in 2019, accounting for nearly half the total of RM72.4 billion transacted in Malaysia that year,” he said.