Paragon Globe shareholders approve RM398.11m Johor land sale to DayOne Data Centers
Paragon Globe Bhd has secured shareholder approval to sell approximately 65 acres of freehold land in Tanjung Kupang, Johor, to DayOne Data Centers Malaysia I Sdn Bhd for RM398.11 million cash. The transaction, approved at an extraordinary general meeting, is expected to generate a net gain of RM187
PETALING JAYA (Oct 28): Paragon Globe Bhd has secured shareholder approval to sell approximately 65 acres of freehold land in Tanjung Kupang, Johor, to DayOne Data Centers Malaysia I Sdn Bhd for RM398.11 million cash.
In a Bursa Malaysia filing on Tuesday (Oct 27), the group said the proposed disposal by its wholly-owned subsidiary PGB Landmark Sdn Bhd was approved at an extraordinary general meeting. The transaction is expected to generate a pro forma net gain of RM187.43 million. In an accompanying press statement, the group said PGB Landmark had received RM228.91 million, or 57.5 per cent of the consideration, as at Sept 28 under the sale and purchase agreement's staged payment structure.
Completion is targeted for the second half of 2027, subject to the fulfilment or waiver of remaining conditions precedent and relevant regulatory approvals. The land was originally earmarked for the first phase of an industrial development comprising 88 factory units, with an estimated gross development value of RM419.10 million. Paragon Globe said management believed an outright disposal offered better risk-adjusted value than proceeding with the original development plan.
Executive chairman Edwin Tan Pei Seng said in the statement: “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.” He said the disposal, once completed, would allow the group to put more capital into ongoing projects, build up its rental-income assets and reduce some borrowings. “We want to keep growing, but liquidity must always come first.”
Of the gross proceeds, RM146 million has been allocated to ongoing projects, comprising RM90 million for Calia Residences by PGB and Kensley Square @ Kensington Parkview, and RM56 million for PGB-GSP AutoPark, PGB Hostel Phase 2 and Desa 27 by PGB. The group intends to retain the latter three projects as investment properties to generate recurring rental income. A separate RM56 million has been earmarked to partially repay bank borrowings, which the group expects to generate annual interest savings of approximately RM3.09 million. Another RM57.10 million has been set aside for future landbank or property acquisitions, although no specific target had been identified as at Sept 28.
Based on its audited financial position as at March 31, 2026, and assuming completion of the transaction, Paragon Globe said net assets per share would rise from 64 sen to 89 sen. Gearing would decline from 1.06 times to 0.68 times after taking into account the proposed repayment of borrowings. The two parcels, currently held under H.S.(D) 651854, PTD 12333 and H.S.(D) 651853, PTD 12334 in Mukim Tanjung Kupang, Johor Bahru district, are within Gerbang Nusajaya in Iskandar Puteri. They are approximately 7km from the Sultan Abu Bakar Customs, Immigration and Quarantine Complex and within Flagship B of the Johor-Singapore Special Economic Zone.
The purchaser intends to use the site for data centre development, Paragon Globe said. The consideration is close to the RM398 million independent market valuation by CBRE WTW Valuation & Advisory Sdn Bhd. According to the separate EGM outcome announcement, holders of 522,447,819 shares voted in favour of the disposal resolution, while holders of 202 shares voted against it.
