Qualampur: After acquiring RM337 million from disposal of more than 67 acres of industrial land in Johor, Paragon Globe BHD has set a clear path to support development and use income to strengthen the company’s financial position.
Executive Chairman Datuk Seri Edwin Tan said that in the short term, RM112.17 million will be used to finance infrastructure works and development costs for their projects in Des Semelang, Nusajaya and Dang Bay.
Additionally, RM57 million will be allocated to reduce the loan, which saves RM3.07 million in annual interest.
“Our focus remains on the discovery of new opportunities that ensure the successful completion of the ongoing projects and to align with our strategic goals. These efforts will be able to provide us permanent value for our shareholders, contributing to the change of Johor in a regional economic power plant, ”Tan said Sunbiz,
In December last year, the shareholders of the Paragon Globe approved the disposal of 47.86 acres in RM238.32 million and RM98.98 million respectively in DESA CEMERLANG, 47.86 acres and 19.759 acres of freehold industrial land.
Tan stated that the disposals are fully aligned with paragon globe strategy to adapt to their landbank and adapt to high-development, high-value development projects. In particular, income received from land disposals will be included in strategic acquisition, repayment of lending and development projects.
“This step is on time, because the chances of growth of Johor are increased by initiatives like Johor-Singapore Special Economic Zone (JS-SEZ), which is a state status as a hub for investment in areas such as digital economy and logistics Are in By contributing to the digital infrastructure through transactions with BDC, we support the state’s economic vision, optimizing shareholder value, ”said Tan.
Sharing how to increase the disposal shareholder price, Tan said, in the near period, the RM337 million flow will increase the financial position of the company, allowing it to extend a strong balance sheet more effectively executed more effectively Will be able to do.
“In the next few years, we will focus on our resources on high gross growth price residential projects, including Dang Bay and Johor Bahru City Center -serving apartment projects and landed projects in Iskandar Putri. Whereas, mainly residential in nature, these development strategically deployed in prominent places designed to benefit from the economic development and promoted connectivity run by JS-messages.
“The influx of talent, business and economic activity in Johor through JS-message is expected to increase the demand for high quality residential properties, these projects have been aligned with widespread changes of the region. The initiative is in the position of the paragon globe, to further increase the shareholder price, to redeem the development of Johor in a regional economic power plant, ”said Tan.
He said that income from land disposals is mainly allocated towards strengthening the core property development portfolio of Paragon Globe, with clear attention to completing the ongoing projects.
“In particular, RM 38 million income will be used to fund the construction of Pacon Central Phase 3 and detected Factory Type D2, which are located in both Packen Neenas, Johor. Both these projects are strategically important for the development trajectory of PGB, ”said Tan.
The Pekan Sentral Phase 3 includes 48 units of shop offices, with an estimated gross growth cost of RM31.79 million and began this month.
With an estimated gross growth cost of detailed factory type D2RM 32.79 million, there is a project of five separate factories, and construction for April is about to begin.
“By ensuring the successful completion of these projects, we want to establish a strong foundation that strengthens our credibility and supports our long -term development strategy. In addition, Paragon Globe continues to detect strategic opportunities in high-development areas, such as healthcare infrastructure and sector JS-message, aligning with JS-message, diversifying income streams and raising shareholder price, ” .
