Paramount shareholders approve RM227.4mil land purchase

KUALA LUMPUR: At Paramount Corporation Bhd’s Extraordinary General Meeting (EGM), its shareholders approved the acquisition of 12 parcels of freehold land from NCT United Development Sdn Bhd worth RM227.38mil.

The company said in a press release on Wednesday that this would be the second township of the group measuring 273.5acres located in the District of Sepang in Selangor.

After the proposed acquisition, the total landbank of the group would increase to around 900 acres.

Paramount said the proposed acquisition has an estimated gross development value (GDV) of RM1.1bil, strengthening the group’s total GDV to RM9.1bil, which would sustain its development activities over the next ten years.

“This acquisition is in line with Paramount’s strategy of expanding its landbank to locations with strong growth potential, scaling up development activities to generate sustainable growth and balancing its product portfolio to cater to different market segments,” the company added.

Paramount group chief executive officer Jeffrey Chew said that the area of proposed acquisition had strong drivers of growth as it included a Sepang population of 1mil, KLIA workforce of 10,000, Putrajaya and Cyberjaya workforce of 70,000 and the upcoming Xiamen University campus with a capacity for 10,000 students.

This proposed acquisition is expected to commence end of this year or early next year and would complete over a span of eight years.

“The property market is also showing strong signs of moving towards the mid-priced segment, and this acquisition, with its current development status, approved Master Layout Plan and ready infrastructure, facilitates our plans for speed to market and turnaround time,” Jeffrey said.

The proposed acquisition in the Klang valley would also allow the group to tap into new generation of home buyers particularly the Bumiputra segment, as the government is pushing to provide affordable options including 100% loan under the Youth Housing Scheme.

Meanwhile, during the EGM, Chew told the shareholders of the group that the second township would comprise of single storey through to double storey homes, shop offices and semi-detached factories, as well as public amenities like schools, playgrounds and mosques.

Moving forward, the group’s commercial developments such as Mitsui Outlet Park and Kuala Lumpur International Outlet are expected to commence operations 2015 and 2016 respectively, which would add value to the property market in the area.