PETALING JAYA: Paramount Corporation Bhd is partnering Japanese property developer Mitsui Fudosan through a joint venture to undertake a RM1.34 billion serviced apartment development along Jalan Ampang, Kuala Lumpur.
The partnership will be implemented through the proposed disposal of a 49% stake in Meridian Kuasa Sdn Bhd (MKSB), a wholly-owned subsidiary of Paramount, to Mitsui Fudosan (Asia) Malaysia Sdn Bhd for RM23.06 million cash.
Upon completion, Paramount will retain a 51% stake in MKSB, while Mitsui Fudosan will hold the remaining 49%.
In a Bursa Malaysia filing today, Paramount said the joint venture will develop a 3.7-acre freehold commercial land off Jalan Ampang into a serviced apartment project known as The Ashbourne, with an estimated gross development value (GDV) of RM1.34 billion.
The proposed development will comprise two residential towers with about 458 units, together with a podium, car parks, facilities floors and ancillary components.
Construction is expected to commence in the fourth quarter of 2026, with completion targeted for the fourth quarter of 2030.
Paramount said its wholly-owned subsidiary, Paramount Property Development Sdn Bhd, will assume primary responsibility for project management, sales and marketing, while the development will be undertaken by MKSB.
The group expects to realise a pro forma gain of approximately RM43.87 million from the proposed disposal, including a fair value gain on its retained 51% equity interest in MKSB.
Paramount said the joint venture would allow it to unlock the value of the land while freeing up cash flow for other strategic initiatives and future business expansion.
It added that the partnership would enable both parties to leverage their respective expertise and market presence, improve development efficiency, optimise costs and enhance the project’s marketability.
The RM23.06 million disposal proceeds will be used mainly for the group’s working capital, with RM19.75 million allocated for operating and administrative expenses. The balance will cover capital gains tax and transaction expenses.
Paramount said the proposed development is not expected to have an immediate material impact on its earnings for the financial year ending Dec 31, 2026, but is expected to contribute positively to future earnings as the project progresses and units are sold.
The proposed disposal is expected to be completed by Dec 31, 2026, subject to the fulfilment or waiver of the conditions precedent.
