MAIN Market-listed property developer Paragon Globe Bhd (PGB) has received the green light from shareholders to dispose of about 65 acres of land in Tanjung Kupang, Iskandar Puteri, Johor to DayOne Data Centers Malaysia I Sdn Bhd for RM398.11 mil cash.
The ordinary resolution was approved at the group’s extraordinary general meeting (EGM) held today (Oct 27) with 99.99% of votes cast in favour.
The proposed disposal is expected to generate an estimated net pro forma gain of RM187.43 mil.
Based on PGB’s audited financial position as of end-March 2026 and assuming completion of the transaction, net assets per share would increase from 64 sen to 89 sen while gearing is expected to decline from 1.06 times to 0.68 times after taking into account the proposed RM56.0 mil repayment of bank borrowings.
The transaction forms part of PGB’s on-going approach to selectively monetise land where management believes an outright disposal offers better risk-adjusted value than proceeding with the original development plan.
The Tanjung Kupang land was originally earmarked for the first phase of an industrial development comprising 88 factory units with an estimated gross development value (GDV) of RM419.10 mil.
“Instead of tying up our cash for years to build factories on this site, we decided it was smarter to accept a good offer on the land,” commented PGB’s executive chairman Datuk Seri Edwin Tan Pei Seng.
“Once completed, the disposal will allow us to put more capital into our on-going projects, build up our rental-income assets and reduce some borrowings. We want to keep growing but liquidity must always come first.”
Of the RM398.11 mil in gross proceeds, PGB has allocated RM146.0 mil to fund its on-going projects.
Within this allocation, RM90.0 mil will be directed towards Calia Residences by PGB and Kensley Square @ Kensington Parkview.
Another RM56.0 mil is earmarked for the PGB-GSP AutoPark, PGB Hostel Phase 2 and Desa 27 by PGB which the group intends to retain as investment properties to generate recurring rental income.
Moreover, PGB has also allocated RM56.0 mil to partially repay bank borrowings, a move expected to generate annual interest savings of approximately RM3.09 mil.
A further RM57.10 mil has been set aside for future landbank or property acquisitions. As of Sept 28, PGB has not identified a specific target for this allocation.
The RM398.11 mil consideration aligns closely with the independent market valuation of RM398.0 mil conducted by CBRE WTW Valuation & Advisory Sdn Bhd.
The disposal lands are strategically located within Gerbang Nusajaya in Iskandar Puteri which is about 7km from the Sultan Abu Bakar Customs, Immigration and Quarantine (CIQ) Complex and sit within Flagship B of the Johor-Singapore Special Economic Zone (JS-SEZ). The purchaser intends to use the site for data centre development.
As at the latest practicable date of Sept this year, PGB Landmark Sdn Bhd had already received RM228.91 mil – representing 57.5% of the total disposal consideration – under the staged payment structure of the sale and purchase agreement.
Following today’s shareholder approval, the disposal remains subject to the fulfilment or waiver of remaining conditions precedent and relevant regulatory approvals. Subject to these conditions being met, the transaction is targeted for completion in 2H2027.
At the close of today’s (Oct 27) market trading. PGB was up 1 sen or 1.41% to 72 sen with 266,500 shares traded, thus valuing the company at RM538 mil. – Oct 27, 2026
