Paramount, Mitsui Fudosan form RM1.34b JV for The Ashbourne serviced apartments off Jalan Ampang
Paramount Corp Bhd has signed a joint venture with Mitsui Fudosan (Asia) Malaysia to develop The Ashbourne, a RM1.34 billion serviced apartment project off Jalan Ampang, Kuala Lumpur. The deal involves Mitsui acquiring a 49% stake in the project company for RM23.06 million, with Paramount retaining
PETALING JAYA (Nov 4): Paramount Corp Bhd has signed a joint venture agreement with Mitsui Fudosan (Asia) Malaysia Sdn Bhd to develop The Ashbourne, a proposed serviced apartment project off Jalan Ampang in Kuala Lumpur with an estimated gross development value of RM1.34 billion.
In a Bursa Malaysia filing on Wednesday (Nov 4), Paramount said it had also signed a conditional agreement to sell a 49% stake in Meridian Kuasa Sdn Bhd, its wholly owned subsidiary that owns the project site, to Mitsui Fudosan (Asia) Malaysia for RM23.06 million in cash. Paramount will retain a 51% stake upon completion.
The preliminary plan comprises two residential towers with about 458 serviced apartments in total and one podium. Paramount expects development to begin in the fourth quarter of 2026 and be completed in the fourth quarter of 2030.
The vacant freehold commercial site measures about 14,974 sq m (161,179 sq ft or 3.70 acres) and is held under Geran 80494, Lot 20009, Seksyen 89A, Bandar Kuala Lumpur. It is next to ALTY Orthopaedic Hospital, about 2km east of Kuala Lumpur City Centre. An express condition of the title limits development to commercial buildings for serviced apartments.
Paramount expects a pro forma gain of RM43.87 million from the proposed sale, including about RM24 million from remeasuring its retained stake at fair value. It expects to account for Meridian Kuasa as a joint venture, subject to an assessment of the parties’ rights and obligations under the agreement and the applicable accounting standards.
Under the joint venture agreement, Paramount is obliged to meet 51% of Meridian Kuasa’s funding requirements and ensure that Meridian Kuasa’s existing external financing facilities remain in place until fully settled or terminated during the development. Paramount expects the stake sale to close by Dec 31, barring unforeseen circumstances.
