KUALA LUMPUR: Paramount Corporation Bhd plans to undertake property projects with an estimated gross development value (GDV) of RM1.1bil with the purchase of 237.3 acres of land in Sepang, Selangor from NCT United Development Sdn Bhd.
The property-education based company said on Friday it had sealed a deal to purchase the freehold land for RM227.38mil or RM22 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 GDV of RM1.1bil, the acquisition will enable Paramount to strengthen its total GDV to approximately RM9.1bil,” it said.
Paramount said the proposed acquisition, which comes with the Development Order, will allow the group to speed up the launching and replicate the success of the group’s hallmark gated and guarded landed developments in Kemuning Utama, Shah Alam, Selangor, and in Bukit Banyan and Bandar Laguna Merbok, Sungai Petani, Kedah which have enjoyed strong sales take-up rates since their launches.
“Barring any unforeseen circumstances, the proposed development is expected to commence in early 2016 for completion over a development period of eight years,” it said.
Paramount said the total development cost for the proposed development had not been determined at this juncture, pending the finalisation and approval of the detailed revised master layout plan.
Paramount group CEO 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.”
He said the acquired land was along Jalan Dengkil-Salak Tinggi, about 1.8 km north of Bandar Salak Tinggi. The 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 within a 13.5-km radius.
“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,” he said.