Paramount accepts development rights from KHSB

KUALA LUMPUR: Paramount Corp Bhd’s unit Aneka Sepakat Sdn Bhd has accepted the development rights from Kumpulan Hartanah Selangor Bhd (KHSB) to develop two parcels of leasehold commercial land measuring 9.66 acres in Section 14, Petaling Jaya.

The proposed development will include four blocks of high-rise residential buildings consisting of about 1,600 units of residential properties, including 20% of affordable properties, Paramount said in a filing with Bursa Malaysia.

Aneka Sepakat will claim 84% of the devel- opment’s projected gross development value (GDV) of RM1bil, with 16% or RM160mil development rights value going to KHSB.

The gross development cost of the property is projected at RM835mil while profit is expected to be about RM165mil, both attributable entirely to Aneka Sepakat.

Under the terms of agreement, Aneka Sepakat is obliged to settle a sum of RM47mil, of which RM27mil is for the settlement of encumbrances and the withdrawal of a private caveat on the land, as well as a further RM20mil for payment to KHSB.

“The proposed development is line with Paramount’s asset light strategy to enlarge its land bank at prime areas, particularly at strategic Transit Oriented Development locations in the well-established Petaling Jaya city.

“It will also provide Paramount with the opportunity to leverage on collaborations with landowners to scale up its property development activities to generate long-term sustainable income.

“With a projected GDV of RM1bil, the proposed development will enable Paramount to further strengthen its current total GDV of RM8.6bil,” it said.