Paragon Globe Bhd is disposing of 26.42 hectares of freehold land in Iskandar Puteri, Johor, to DayOne Data Centers Malaysia III Sdn Bhd for RM398.11 million in cash, in a deal expected to generate a net gain of RM189.72 million.
In a Bursa Malaysia filing on Tuesday, the company said the disposal is part of its strategy to optimise its landbank through selective monetisation of assets.
The vacant land is located along Jalan Gelang Patah–Tanjung Kupang in Gerbang Nusajaya, within the Johor-Singapore Special Economic Zone, and is approximately seven kilometres from the Sultan Abu Bakar Customs, Immigration and Quarantine Complex.
Paragon Globe said proceeds from the sale will be allocated across several purposes. About RM146 million will be used to fund ongoing property development projects, RM78 million for infrastructure and related development works tied to the disposal, RM57.1 million for new land acquisitions, RM56 million for repayment of bank borrowings, and RM60.6 million for working capital and tax obligations.
The repayment of borrowings is expected to reduce the group’s gearing ratio to 0.40 times from 0.73 times, while also generating annual interest savings of approximately RM3.17 million.
On a pro forma basis, the disposal is expected to increase Paragon Globe’s net assets per share to 79 sen from 54 sen and lift earnings per share by 25.83 sen.
The transaction is expected to be completed in the second half of 2027.
Shares in Paragon Globe closed 4 sen or 4.9% higher at 85 sen on Tuesday, giving the group a market capitalisation of RM634.63 million. The stock has gained 46.6% over the past year.
