Paragon Globe Bhd (PGB) has entered into an agreement to sell a 5.45-hectare freehold industrial parcel in Tanjung Kupang, Johor, for RM64.47 million, marking a strategic move to reinforce the group’s financial position.
According to its filing with Bursa Malaysia on Thursday, the sale was executed through PGB’s wholly owned subsidiary, PGB Landmark Sdn Bhd (PLSB), via a conditional sale and purchase agreement with GSP Automotive Malaysia Sdn Bhd.
Prime Industrial Land within Gerbang Nusajaya
The land — situated in the fast-growing Gerbang Nusajaya region and surrounded by major industrial developments — is currently vacant but zoned for both commercial and industrial purposes. A previous valuation in 2023 placed the parcel at RM24.5 million, indicating a significant uplift in value through this disposal.
This type of asset reflects the rising demand for large-scale industrial parcels, similar to the growing interest seen in industrial land in Selangor and industrial property in the Subang area, driven by manufacturing, logistics, and data-centre expansion across Malaysia.
Terms of the Deal
Under the agreement:
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GSP Automotive will pay 10% in deposits,
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While the remaining 90% is payable within three months once all SPA conditions are met.
The completion of the transaction hinges on key conditions, including:
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State approval for foreign ownership under Section 433B of the National Land Code,
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Completion of earthworks by PLSB,
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And amendments to the land’s express conditions.
Strengthening PGB’s Financial Position
PGB plans to channel the proceeds into:
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Disposal-related expenses,
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Partial repayment of bank borrowings,
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And working capital needs.
The group expects to record an estimated net gain of RM22.14 million, which will enhance its balance sheet and support future growth initiatives. This strategic divestment mirrors broader trends in the market, where companies are realigning portfolios to focus on higher-yield segments, including high-demand hubs for factory spaces in Puchong and commercial property in KL.
PGB confirmed that none of its directors or major shareholders hold any interest in the transaction.
Subject to approvals, the disposal is anticipated to be completed by the fourth quarter of 2026.
