Kuala Lumpur (April 16): Paragon Globe Bhd (KL: PGLOBE) is selling a 3.53-acre Land in Tanjung Kupang, Johor for RM19.23 Million.
The deal is expected to be done by the first quarter of 2026, with estimated pro forma net gains of RM7.89 million, according to an exchange filing. Half of the proceeds will be used for part-repayment of borrowings while the rest has been earmarked for working capital and other expenses.
Paragon Globe will still retain about 8.48 acres of net sellable land from the master land, which was originally designated for a development known internally as Development Project 2.
This project, initially scheduled to start in 2026 and conclude by 2028, involved the construction of eight factory units and a dormitory with 350 rooms designed to accommodate up to 5,250 workers. The total gross development value was estimated at RM537.90 million.
-The project could generate gross development profit of RM127.40 million while the dormitory’s operation could yield an estimated gross revenue of RM126 million in the first 10 years, according to its previously disclosed estimates.
“The proposed disposal is not expected to materially impact the viability or projected returns of the Development Project 2,” though Paragon Globe said that it will revise and optimise the development layout of the project to maximise returns from the remaining land.
The company didn’t elaborate further on the revision.
