The 3.53-acre land sale will support loan repayment and working capital as firm adjusts strategy
Paragon Globe Bhd is divesting part of its Johor landbank for RM19.23 million, aiming to strengthen liquidity and streamline future development.
Paragon Globe Bhd, through its wholly owned subsidiary PGB Landmark Sdn Bhd, has signed a sales and purchase agreement with Buildcon Concrete Sdn Bhd to dispose of a 3.531-acre plot of freehold land in Tanjung Kupang, Johor Bahru, for RM19.23 million. The land forms part of a larger parcel initially earmarked for industrial and worker accommodation development under Development Project 2.
Strong Returns and Strategic Allocation
According to the Bursa Malaysia filing, Paragon Globe originally purchased the plot for RM6.82 million in November 2023. Upon completion of the disposal, the group expects a net pro forma gain of RM7.89 million after deducting related expenses and taxes. Proceeds will be split between bank loan repayments and working capital, helping to fortify the company’s balance sheet.
Masterplan Revision Ahead
Despite the disposal, Paragon Globe will retain 8.48 acres of net sellable land from the master plot. The remaining land is still allocated to Development Project 2, which was previously planned to include eight factory units and a large-scale dormitory capable of housing 5,250 workers. The original development was projected to begin in 2026 and conclude by 2028, with a gross development value of RM537.90 million.
Dormitory Operation Yields Expected to Remain Strong
Paragon Globe previously estimated that the dormitory’s operation would generate RM126 million in gross revenue within its first decade. The overall project was also forecasted to bring in a gross development profit of RM127.40 million. The company emphasized that the land disposal will not materially impact these projections but will prompt a revision to the existing layout.
Revised Layout to Maximise Returns
Although specific changes were not disclosed, Paragon Globe confirmed that the project layout will be optimised to ensure higher returns from the remaining land. This strategy reflects a broader trend among developers adjusting land use plans amid fluctuating market conditions and liquidity needs. The disposal underscores a calculated effort to balance asset monetisation and long-term value creation.
Share Price and Market Reaction
As of the latest trading session, Paragon Globe shares dipped slightly by one sen to close at 73.5 sen, bringing its market capitalisation to RM548.77 million. Year-to-date, the stock has shown strong growth, doubling from 36.5 sen, reflecting investor confidence in its strategic direction and ongoing developments.
This sale signals a strategic recalibration by Paragon Globe as it prepares for future construction while managing financial efficiency. With industrial activity and infrastructure in Johor gaining momentum, especially near the Singapore border, the move may attract further investor attention from both Malaysian and Singaporean property watchers.
Sources: The Star (2025), The Edge Malaysia (2025)
Keywords: Tanjung Kupang Land, Paragon Globe Disposal, Development Project Johor, Buildcon Concrete Deal, RM19.23 Million Sale
