Paragon Globe sells more of Johor land it bought last year to data centre company for RM98.98m

• Paragon Globe said its wholly-owned Paragon Business Hub Sdn Bhd (PBHSB) has inked a conditional sale and purchase agreement with Bridge Data Centres Malaysia, which is primarily involved in the provision of infrastructure for hosting, data processing services and related activities.

KUALA LUMPUR (Aug 2): Johor-based developer Paragon Globe Bhd (KL:PGLOBE) is selling more of a big plot of freehold land it had just bought in Plentong, Johor Bahru, to Bridge Data Centres Malaysia IV Sdn Bhd.

In May, it inked an agreement to sell part of the 104.5-acre land — roughly the size of 104 football fields — it had bought for RM71.5 million in November 2023 to Bridge Data Centres. The agreement was for the sale of 47.86 acres of the plot under Geran 80943 Lot 2699 for RM238.32 million, cash, which Paragon Globe said was to improve its liquidity and financial position.

On Friday, it said in a bourse filing that it is selling another 19.759 acres of the land held under the same Geran 80943 Lot 2699 to Data Bridge, for RM98.98 million.

Paragon Globe said its wholly-owned Paragon Business Hub Sdn Bhd (PBHSB) has inked a conditional sale and purchase agreement with Bridge Data Centres Malaysia, which is primarily involved in the provision of infrastructure for hosting, data processing services and related activities.

According to Paragon Globe, the selling price of RM98.98 million represents a 6.89% discount from the plot’s market value of RM106.3 million, as appraised by independent valuer CBRE WTW Valuation & Advisory Sdn Bhd.

The sale is subject to PBHSB obtaining written confirmation from the Equity Development Division within the Ministry of Economy (EPU) stating that no approval from EPU is required for the disposal, and that Bridge Data Centres is approved to buy the plot. This latest disposal, like its earlier proposed deal with Bridge Data Centres, also requires approval of its shareholders.

Of the total cumulative proceeds of RM337.3 million from these two disposals, Paragon intends to spend RM112.16 million to develop the plots — to build roads and infrastructure on them, as agreed under the disposal agreements. It also plans to use RM57 million to repay borrowings, RM92.7 million to buy other plots, RM38 million to fund its ongoing projects and RM36.9 million as working capital.

The estimated net pro forma gain from the proposed disposals is RM112.9 million, said Paragon Globe.

Earlier this week, Paragon Globe announced that it was acquiring two parcels of freehold land in Plentong for RM34.96 million in cash, measuring 11.09 acres and 8.24 acres, from EKL Holdings Sdn Bhd. Prior to that, the company inked agreements in May and June to acquire two other Plentong plots, one measuring 9.84 acres for RM13.5 million, and another measuring 14.85 acres for RM28.56 million.

All these plots it is buying and selling are contiguous to each other.

Paragon Globe is controlled by executive chairman Datuk Seri Edwin Tan Pei Seng and his brother Datuk Seri Godwin Tan Pei Poh, who also serves as the group’s executive director.

The duo hold a 51.8% stake in Paragon Globe through their private vehicle Paragon Adventure Sdn Bhd.

Businessman Tan Sri Robert Tan Hua Choon also holds a substantial 9.82% stake in Paragon Globe. Tan is also popularly known as the “Casio King,” as he is the first and only distributor of the brand’s watches and calculators in Malaysia.

Subject to the required approvals, this latest proposed disposal is expected to be completed by the third quarter of 2025.

Shares in Paragon Globe settled two sen lower at 29 sen on Friday, giving it a market capitalisation of RM202.55 million. The stock has gained seven sen or 31.8% year to date.

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