KUALA LUMPUR, Paragon Globe Bhd has entered into a related-party deal to acquire three parcels of land in Johor for RM11.48 million from its executive chairman Datuk Sri Edwin Tan Pei Seng and Datuk Seri Godwin Tan Pei Poh, with plans to develop affordable housing on the site.
The 11.84-hectare property is purchased from Common Development (M) Sdn Bhd, a company jointly owned by Pei Seng and Pei Poh, who hold 65% and 35% stakes respectively. Both also collectively control 56.79% of Paragon Globe through their investment vehicle, Paragon Adventure Sdn Bhd.
Paragon Globe said the acquisition aligns with the Johor Housing Development Corporation (PKPJ)’s requirements for affordable housing. The company plans to develop a residential project on the land under the Johor affordable housing programme, following PKPJ’s planning and design guidelines.
Situated along Jalan Besar in Simpang Renggam, Johor, the land benefits from strong connectivity and is surrounded by established residential, commercial, and industrial areas. Its proximity to the North-South Expressway and nearby amenities makes it suitable for affordable housing development, the company noted.
The move is also expected to diversify Paragon Globe’s development portfolio by adding residential projects to its existing industrial and affordable housing ventures, broadening revenue streams and supporting sustainable growth. The transaction is slated for completion within nine months from the date of the sale and purchase agreement.
By Monday’s close, Paragon Globe shares fell 2.5 sen or 3.6% to 67.5 sen, giving the company a market capitalisation of RM504 million. The stock has gained 85% year to date.
