JOHOR BAHRU: Main Market-listed property developer Paragon Globe Bhd (PGB) has proposed an acquisition of undivided beneficial interests representing about 8.52 million sq ft within a 256.7 acres freehold master land in Sedenak, Kulai, Johor.
The total cash consideration for the strategic stake stands at RM127.28 million.
Subject to land conversion and applicable development approvals, PGB intends to transform the land areas attributable to its interests into a high-yield industrial park comprising factory units, commercial components, and a workers’ hostel, with the project targeting GreenRE Gold certification as part of its commitment to sustainable development.
Based on the group’s preliminary development concept, the industrial and commercial components are projected to carry an estimated GDV of about RM1.69 billion against estimated Gross Development Costs (GDC) of RM1.26 billion, delivering an estimated gross development profit of approximately RM430 million over the development period.
Concurrently, the proposed workers’ hostel component will comprise 360 units with an estimated capacity of up to 5,400 workers.
The proposed transaction will be undertaken by PGB Gardens Sdn Bhd, a wholly owned subsidiary of PGB, which has entered into 29 conditional sale and purchase agreements with 35 beneficial owners of the relevant interests. Separately, PGB Gardens completed an initial acquisition on July 8 involving beneficial interests representing about 980,100 sq ft for a cash consideration of RM13.86 million, fully funded through internally generated funds.
Upon completion of both exercises, PGB will control an aggregate 841/1000 share of the total beneficial interests in the Sedenak master land.
PGB executive chairman Datuk Seri Edwin Tan Pei Seng said: “We have monetised selected land where the value and timing were right.
We are now rebuilding our pipeline in another Johor growth corridor. The Sedenak acquisition gives us a substantial position within the Kulai-Sedenak JS-SEZ zone. It allows us to evaluate a larger industrial development and phase it carefully, based on approvals and actual market demand.
This is not an immediate profit exercise. It is about securing the right land, managing our capital carefully and preparing PGB for its next stage of growth.”
The proposed acquisition will be funded through a strategic combination of bank borrowings and internally generated funds.
The proposed acquisition remains subject to PGB shareholders’ approval at an extraordinary general meeting to be convened, and subject to the satisfaction of all contractual conditions, completion is targeted for the second half of 2027.