KUALA LUMPUR (July 29): Johor-based developer Paragon Globe Bhd (KL:PGLOBE) is buying more land in Plentong, Johor Bahru, for RM34.96 million cash, as it looks to further enhance its presence in the state.

In a filing with Bursa Malaysia on Monday, Paragon Globe said its wholly owned subsidiary Paragon Business Hub Sdn Bhd is acquiring two parcels of freehold land, measuring approximately 11.09 acres and 8.24 acres respectively from EKL Holdings Sdn Bhd.

Paragon Globe said the land will be used to develop 64 units of terraced factories, 20 units of semi-detached factories and five units of detached factories, with an estimated total gross development value of RM293.52 million and an expected gross development cost of RM226.72 million.

"Accordingly, the group is expected to derive an estimated gross development profit of approximately RM66.80 million over the duration of the proposed development," it said.

The proposed development is expected to commence in March 2025, and envisaged to take three years to complete.

The land is situated right next to the land area that Paragon Globe has been accumulating over the past few months.

Just last month, Paragon Globe announced that it was acquiring a parcel of land, also in Plentong, measuring 9.84 acres, for RM13.5 million.

Prior to that, it also acquired a piece of land, measuring 14.85 acres, in Plentong for RM28.56 million.

Upon completion of all the land acquisitions, Paragon Globe's land bank is expected to reach 309.86 acres.

"The acquired land is situated in an emerging prime location with positive industrial development potential," the group said.

"The sizeable acquired land will fit various industrial properties upon development," it added.

The latest proposed land acquisition is expected to be completed within the next six months.

Paragon Globe is controlled by executive chairman Datuk Seri Edwin Tan Pei Seng and his brother Datuk Seri Godwin Tan Pei Poh, who also serves as the group executive director. The duo hold a 51.8% stake in the group, through the private vehicle Paragon Adventure Sdn Bhd.

Prominent businessman Tan Sri Robert Tan Hua Choon also holds a substantial 9.82% stake in Paragon Globe. Tan, known as the "Casio King", is the first and only distributor of the brand's watches and calculators in Malaysia.

Shares in Paragon Globe settled one sen or 3.33% higher at 31 sen on Monday, giving the group a market capitalisation of RM231.45 million.