Paragon Globe to dispose of land in Johor for RM64mil

PETALING JAYA: Paragon Globe Bhd is disposing of a parcel of freehold land measuring 5.4451 hectares in Johor Baru to GSP Automotive Malaysia Sdn Bhd for RM64.47mil.

In a filing with Bursa Malaysia, the company said the proposed disposal forms part of the group’s ongoing efforts to optimise its asset portfolio and capital structure.

The group said the proposed disposal is expected to generate gross proceeds of approximately RM64.47mil.

Paragon Globe said the bulk of the proceeds from the disposal will be used to repay bank borrowings and working capital.

It said the proposed disposal provides an opportunity for the group to unlock and realise the value of the land in the near term (by the fourth quarter of 2026, being the expected timeframe for completion of the disposal).

“The proposed disposal reflects prudent capital and risk management, balancing near-term value realisation with long-term business sustainability.

“By realising gains from selected assets and redeploying capital into projects with recurring income and growth potential, the group seeks to enhance its earnings base and create long-term shareholder value.”