PETALING JAYA, Paramount Corp Bhd is acquiring 18.97 acres of freehold land in Bandar Cassia, Penang, from Penang Development Corp for RM57.84 million, marking a strategic expansion of its northern region land bank.
In a statement, the property developer said the land acquisition aligns with its plan to drive sustainable growth, with the project expected to contribute a gross development value (GDV) of RM744 million. This adds to Paramount’s existing land bank of 358.9 acres and remaining GDV of RM5.497 billion.
The purchase will be financed through a mix of internal funds and bank borrowings.
Bandar Cassia, Penang
Located just 600 metres from the award-winning Utropolis Batu Kawan development, the newly acquired site sits within the city centre of Bandar Cassia. The proposed development includes serviced apartments, semi-detached townhouses, and shop offices, with construction targeted to begin in 2027 and completion expected by 2033.
Paramount noted that the project would boost housing supply and create a vibrant commercial hub to support Penang’s economic growth.
TA Research: Confident in Envictus Stake Acquisition
Meanwhile, TA Research expressed increased confidence in Paramount’s proposed acquisition of a 28% stake in Singapore-listed Envictus International Holdings Ltd. This follows a recent briefing that addressed key concerns related to earnings, integration, and capital impact.
Paramount’s RM126.32 million cash deal—via its wholly owned Venice Concepts Sdn Bhd—to acquire the stake from JAG Capital Holdings Sdn Bhd (a company majority-owned by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani) is seen as a strategic move into the food and beverage (F&B) sector. Envictus is the operator of brands such as Texas Chicken and San Francisco Coffee in Malaysia.
TA Research believes the investment offers long-term value, given Envictus’s turnaround prospects and attractive entry valuation. The research house also highlighted Paramount’s disciplined approach in limiting further F&B acquisitions.
However, it warned of risks including potential underperformance of the investment, lack of operational control due to the minority stake, and exposure to foreign investment regulation changes—although no such restrictions are currently in place.
Paramount intends to protect its interests by appointing representatives to Envictus’s board.
Property Market Outlook & Valuation
Looking ahead, Paramount has flagged a cautious outlook for the property sector in the second half of 2025, citing external trade uncertainty, rising costs due to fuel subsidy rationalisation, and the expanded sales and service tax (SST).
With RM600 million in sales recorded so far this year—well below its RM1.5 billion full-year target—TA Research noted the possibility of a target revision. Nonetheless, it sees potential for an uptick in sales once clarity on SST and tariff policies emerges.
TA Research maintained its FY25–FY27 earnings projections and target price of RM1.48, based on a 0.6x price-to-book valuation. Paramount remains undervalued, trading at just 6.4x 2026 earnings and 0.4x price-to-book—well below the sector averages of 13.9x and 0.8x, respectively.
With a dividend yield of over 7%, significantly above the industry’s 3.7% average, the research house sees limited downside risk for the stock.
