Set for freehold landed mixed residential and commercial development
Petaling Jaya, 2 January 2015: Paramount Corporation Berhad (Paramount), a leading property developer in the Klang Valley and Kedah, today inked a deal with NCT United Development Sdn Bhd (NCT) to purchase 237.3 acres of freehold land in the District of Sepang, Selangor Darul Ehsan.
Under the terms of the agreement, Paramount acquired the land from NCT at RM227,383,174.00, calculated on the basis of RM22.00 per square foot.
This acquisition is in line with Paramount’s 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. With an estimated potential gross development value (GDV) of RM1.1 billion, the acquisition will enable Paramount to strengthen its total GDV to approximately RM9.1 billion.
Commenting on the acquisition, Paramount Corporation Berhad’s Group Chief Executive Officer, Mr Jeffrey Chew, said, “This acquisition comes at a time when the company is gearing itself for a new phase of growth. Our future growth will be anchored on a strategy of balancing our land bank to cater to different market environments, which in turn will buffer the vagaries of the property market. With improvements to transportation infrastructure, we can cast our nets further and wider for suitable land for development, and this parcel in Sepang District is one of them.”
The acquired land is situated along Jalan Dengkil-Salak Tinggi, approximately 1.8 km north of Bandar Salak Tinggi, the administrative centre of the District of Sepang which accommodates various government offices as well as Stadium Salak Tinggi. Prominent landmarks such as INTI College, Nilai International University College, Tesco and Giant Nilai as well as the Salak Tinggi Express Rail Link (ERL) are all located within a 13.5-km radius from the land.
Furthermore, the vicinity of the acquired land is expected to see a rise in population after the opening of Xiamen University Malaysia’s 150-acre campus at Bandar Kota Warisan, Salak Tinggi in 2015. In addition, commercial developments such as Mitsui Outlet Park and Kuala Lumpur International Outlet, expected to commence operations in 2015 and 2016 respectively, will add value to the property market in the area.
Given its strategic location, the land enjoys good connectivity to Putrajaya, Cyberjaya as well as Kuala Lumpur International Airport (KLIA) via the Putrajaya-Cyberjaya Expressway and to Kuala Lumpur city centre via the Kuala Lumpur-Seremban Highway and the Maju Expressway.
This acquisition will allow Paramount to replicate the success of the Group’s hallmark gated and guarded landed developments in Kemuning Utama, Shah Alam, Selangor Darul Ehsan, and in Bukit Banyan and Bandar Laguna Merbok, Sungai Petani, Kedah Darul Aman, which have enjoyed strong sales take-up rates since their launches.
This proposed development by Paramount is expected to commence in early 2016 for completion over a span of 8 years.