Paragon Globe Unit To Dispose Of Tanjung Kupang Land For RM398.11 Mln

KUALA LUMPUR, June 23 (Bernama) -- Paragon Globe Bhd’s (PGB) wholly-owned subsidiary, PGB Landmark Sdn Bhd, has proposed to dispose of two parcels of freehold land in Tanjung Kupang, Johor, for RM398.11 million to Dayone Data Centers Malaysia III Sdn Bhd.

In a filing with Bursa Malaysia today, the property developer said the proposed disposal is expected to result in an estimated net pro forma gain for the group.

“The proposed disposal forms part of the group’s ongoing strategy to optimise its landbank portfolio through the selective monetisation of certain land assets.

“As a property developer, the group continuously reviews its landholdings to ensure that they remain aligned with its long-term development plans, prevailing market conditions, project priorities and overall resource allocation strategy,” it said.

The company said the proposed disposal is expected to generate gross cash proceeds of approximately RM398.11 million, which will provide the group with greater flexibility to redeploy its capital.

“This will enable the group to support its funding requirements, strengthen its financial flexibility and facilitate the execution of the group’s strategic priorities moving forward.

“In particular, approximately RM56 million has been earmarked for the partial repayment of outstanding bank borrowings,” it said.

It added that the repayment is expected to reduce the group’s gearing and generate potential interest savings of approximately RM3.17 million per annum, while further enhancing its liquidity and working capital position.

The company said the proposed disposal is subject to, among others, approval by PGB’s shareholders at an extraordinary general meeting to be convened.

“The proposed disposal is expected to be completed in the second half of 2027,” it added.

UOB Kay Hian (M) Sdn Bhd has been appointed as the principal adviser.

-- BERNAMA