Paragon to buy Iskandar Capital plots for RM60.9 mil

Paragon Globe Bhd has entered into a conditional sales and purchase agreement (SPA) with Iskandar Capital Sdn Bhd to purchase two plots of land totalling 12.5ha in Johor for RM60.9 mil cash.

Iskandar Capital’s shareholders are Iskandar Investment Bhd (55.46%), Employees Provident Fund (29.26%) and Khazanah Nasional Bhd (15.28%).

The two plots, located in Pulai and currently earmarked as agricultural land, is being sold for RM45 per sqft. Paragon Globe is expected to finance the purchase through a combination of internally generated funds, bank borrowings, and other fundraising exercises. 

An earnest deposit of RM8.5 mil has already been transacted and an additional RM3.69 mil will be paid upon the signing of the SPA, Paragon Globe said in a Dec 5 bourse filing.

A point to note is that part of the land, about 2.63ha, currently has its title held by the Land and District Office of Johor Bahru, due to it being previously under consideration for the construction of a main intake substation by Tenaga Nasional Bhd.

But the intake has been relocated to other plots of land owned by Iskandar Capital. This has allowed Paragon Globe to purchase the Pulai plots to be developed as a commercial area.

The deal is conditional on whether Iskandar Capital will be able to acquire the sub-divided title for the land currently held by the Land and District Office, as well as Paragon Globe receiving shareholder approval at an extraordinary general meeting to be called by the group.

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