Paramount aims to secure land with RM6b GDV potential by year end to support future property projects

• As at June 30, Paramount’s remaining undeveloped land stood at 358 acres, carrying a GDV potential of RM5.24 billion.

KUALA LUMPUR (Aug 27): Paramount Corp Bhd (KL:PARAMON) is accelerating its land replenishment drive with plans to secure land with gross development value (GDV) potential of up to RM6 billion by year end, as the property developer seeks to sustain its pipeline while keeping to its core markets in the Klang Valley, Penang and Kedah.

Group chief executive officer Jeffrey Chew Sun Teong (pictured) said the company had already closed two acquisitions over the past two months—a RM946 million township project in Kulim and a RM744 million mixed development in Penang—which together added RM1.7 billion of GDV to its current land bank.

“With the pace of our launches averaging RM1.5 billion a year, our current land bank only covers about one to one-and-a-half years. We need to replenish RM6 billion worth of GDV, and we need to do it now,” Chew told reporters at a press conference on Wednesday.

As at June 30, Paramount’s remaining undeveloped land stood at 358 acres, carrying a GDV potential of RM5.24 billion. Chew expects the land replenishment plan and its existing undeveloped land to sustain launches for at least six years.

Chew stressed that Paramount has no intention of venturing outside its strongholds, noting that Penang, Kedah and Klang Valley continue to offer strong growth prospects.

“As far as geography, we still don’t see any shift. The current status is that Penang and Kedah, together with Klang Valley, are moving in a very good projection. Penang is benefitting from infrastructure upgrades like the MRT, and both regions are well positioned to attract urban migration from the rest of the country,” he said.

Over the past decade, Chew said Paramount has built its brand presence in these areas, moving from landed developments in Sungai Petani to high-rise and integrated projects in Klang Valley and Penang. As such, he said the company intends to deepen its foothold in these corridors, rather than venturing into new regions.

The CEO noted that the recent acquisitions were concluded after protracted negotiations. The Penang deal with Penang Development Corp, for instance, took more than a year before the terms were finalised, while the Kulim landowner was under financial pressure to sell quickly.

“We are seeing more such opportunities. Landowners are concerned about high interest rates, tariffs and global uncertainties, so we see that we are able to close deals at terms favourable to us,” Chew said.

In July, Paramount acquired a piece of freehold land in Penang from Penang Development Corp for RM57.84 million with plans to develop a new mixed development with an estimated GDV of RM744 million on the plot. Construction is slated to commence in 2027 and is anticipated to be completed by 2033.

Then earlier this month, the group bought four freehold land parcels in Bandar Lunas, Kulim—totalling 295.55 acres—for RM128.74 million, which will be developed into a township with an estimated GDV of RM946 million.

At noon market break on Wednesday, shares in Paramount were unchanged at RM1.06 with a market capitalisation of RM660.14 million.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.