Strategic Landbank Expansion in Penang
Paramount Corp Bhd is set to acquire a significant 18.97-acre parcel of freehold land in Bandar Cassia, Penang, for a total of RM57.841 million from the Penang Development Corp. This strategic acquisition is a crucial move to bolster the company’s landbank and ensure a pipeline for sustainable growth in Malaysia’s northern region. The new land is projected to generate an impressive gross development value (GDV) of RM744 million upon its completion, which will substantially augment Paramount’s existing landbank of 358.9 acres and remaining GDV of RM5.497 billion. This purchase demonstrates the company’s proactive approach to securing prime development opportunities in a high-growth area. The planned project is a key component of Paramount’s long-term business strategy, designed to reinforce its market position and deliver a strong return on investment. By strategically expanding its land holdings, the company is positioning itself to capitalize on the robust demand for residential and commercial properties in Penang, ensuring continued revenue streams and long-term financial health.
Prime Location Reinforces Long-Term Confidence
The strategic importance of this acquisition is further emphasized by the land’s prime location within the city center of Bandar Cassia. The parcel is situated within a mere 600-meter radius of Utropolis Batu Kawan, which is Paramount Property’s own award-winning development. This proximity to a successful and well-regarded project provides a significant competitive advantage and a solid foundation for the new development. Jeffrey Chew, the chief executive officer of Paramount Group, highlighted that this landbank replenishment is a direct reflection of the company’s strong confidence in the long-term potential of this rapidly growing region. He also noted that the acquisition, which will be funded through a balanced combination of internally generated funds and bank borrowings, is expected to contribute positively to the company’s revenue over the long term, thereby reinforcing its leading position in the competitive property market. The strategic location and the CEO’s confident statement underscore that this is a well-calculated move designed for sustained success.
Vision for Integrated Urban Development
Paramount’s vision for the newly acquired land is to create a comprehensive, integrated urban development that caters to a diverse range of residential and commercial needs. The planned project is designed to be a mixed-use development comprising modern serviced apartments, comfortable semi-detached townhouses, and a series of dynamic shop offices. This variety of offerings aims to attract a broad demographic of homebuyers and business owners. The company has already set a clear timeline for the project, with construction slated to commence in 2027 and the entire development expected to be completed by 2033. Once fully developed and operational, this project is anticipated to have a profound positive impact on the local community. It will not only provide much-needed housing options for a growing population but also foster a vibrant commercial environment, thereby significantly enhancing the overall liveability and economic growth of Penang state. This project represents more than just a real estate development; it is an investment in the future of the region.
