Paramount Expands in Taman U-Thant with RM145 Million Acquisition
Paramount Corp Bhd (KL:PARAMON) has announced the acquisition of an 18,317 sq m leasehold land in Taman U-Thant, Kuala Lumpur, including 93 low-rise luxury condominium units, for a total cash consideration of RM145 million.
The purchase, made through Paramount’s wholly owned subsidiary Tanah Bayumas Sdn Bhd, is a strategic addition to the group’s land bank, bolstering its position in a high-demand area for upscale residential projects.
Details of the Acquisition
- Property Overview: The asset, branded as Brunsfield Residence, comprises six five-storey condominium blocks with 93 units and a sub-basement car park.
- Occupancy Status: As of September 2024, 44% of the units were tenanted.
- Location Advantage: Positioned near Paramount’s successful high-end developments, The Atrium (100% sold) and The Ashwood (72% sold).
Redevelopment Plans
Paramount intends to redevelop the site into luxury strata-titled residential units.
- Projected GDV: The redevelopment is expected to generate a gross development value of RM300 million over a five-year period.
- Market Focus: Paramount aims to replicate the success of its nearby projects, leveraging its strong track record in high-end residential developments.
- Launch Timeline: Development is anticipated to commence within one year of acquisition completion.
Funding and Financial Impact
The acquisition will be financed through a mix of internally generated funds and bank borrowings, balancing:
- Debt level
- Interest costs
- Operational cash flow needs
As of September 2024, Paramount held RM172.99 million in cash and RM876.57 million in borrowings, according to its financial statement.
Strategic Expansion in Kuala Lumpur
Paramount sees the acquisition as an opportunity to:
- Strengthen its presence in Taman U-Thant, a prestigious residential enclave.
- Enhance GDV portfolio: The acquisition raises Paramount’s total GDV to RM6.22 billion, ensuring sustainable growth.
- Boost future earnings: The redevelopment aligns with Paramount’s strategy for speed-to-market efficiency, targeting affluent buyers in a prime location.
Completion Timeline
- SPA Completion: Within six months from the agreement date.
- Project Launch: Expected within one year after acquisition finalization.
Market Response
On the day of the announcement, Paramount’s shares closed at RM1.04, with a market capitalization of RM647.68 million.
This strategic acquisition demonstrates Paramount’s confidence in Kuala Lumpur’s luxury residential market, reinforcing its commitment to delivering high-value properties in sought-after locations.
