By Sharen Kaur
sharen@nstp.com.my
Published in NST on January 9, 2013
sharen@nstp.com.my
Published in NST on January 9, 2013
PARAMOUNT Corp Bhd will explore financing options from the capital markets for Paramount Utropolis, its RM800 million integrated development in Shah Alam.
Executive deputy chairman Datuk Teo Ching Quan expects to finalise the financing structure for the project by the end of this month.
"We are looking at a combination of banks and capital markets," he said yesterday, at the unveiling of Paramount Utropolis.
Paramount's cash level stood at RM206.2 million, and it has RM672 million in its shareholders fund, as at December 31 2011.
For the year under review, it posted a pre-tax profit of RM110.4 million on revenues of RM473.8 million.
The property development and education-focus company has about 320ha in its pocket, with potential to generate some RM8 billion in gross development value (GDV) over the next eight years.
A major part of the landbank is located in Sg Petani, Kedah, and the rest in Klang Valley.
Paramount Utropolis will be developed in three phases over the next seven years in Glenmarie.
It comprises 1,500 units of serviced apartments and SOHOs (small office-home office), to be developed above a 120,000 sq ft retail centre, and a purpose-build KDU University College Campus adjacent to it.
Teo, a substantial shareholder of Paramount with 27.62 per cent stake, said the company will launch the units in phases over seven years to capitalise on growth.
"We aim to launch the first batch in March. They will be priced between RM550 per square ft (psf) and RM650 psf. We are bullish on sales as this is the first of its kind development in Shah Alam," he said.
Teo expects construction works for the project to commence in the current quarter.
Paramount group chief executive officer Chan Say Yeong said the company will retain the complex, comprising 50 retail lots, to add to its recurring income.
"In the long run, we expect to have a certain sizeable portfolio to give us long-term generating income. When we have achieved a certain target, we will think of monetising the assets," he said.
Chan also said that the new KDU campus in Shah Alam will replace the existing campuses in Damansara Jaya and Section 13 in Petaling Jaya, which are parked under its subsidiary, KDU College Sdn Bhd.
Executive deputy chairman Datuk Teo Ching Quan expects to finalise the financing structure for the project by the end of this month.
"We are looking at a combination of banks and capital markets," he said yesterday, at the unveiling of Paramount Utropolis.
Paramount's cash level stood at RM206.2 million, and it has RM672 million in its shareholders fund, as at December 31 2011.
The property development and education-focus company has about 320ha in its pocket, with potential to generate some RM8 billion in gross development value (GDV) over the next eight years.
A major part of the landbank is located in Sg Petani, Kedah, and the rest in Klang Valley.
Paramount Utropolis will be developed in three phases over the next seven years in Glenmarie.
It comprises 1,500 units of serviced apartments and SOHOs (small office-home office), to be developed above a 120,000 sq ft retail centre, and a purpose-build KDU University College Campus adjacent to it.
Teo, a substantial shareholder of Paramount with 27.62 per cent stake, said the company will launch the units in phases over seven years to capitalise on growth.
"We aim to launch the first batch in March. They will be priced between RM550 per square ft (psf) and RM650 psf. We are bullish on sales as this is the first of its kind development in Shah Alam," he said.
Teo expects construction works for the project to commence in the current quarter.
Paramount group chief executive officer Chan Say Yeong said the company will retain the complex, comprising 50 retail lots, to add to its recurring income.
"In the long run, we expect to have a certain sizeable portfolio to give us long-term generating income. When we have achieved a certain target, we will think of monetising the assets," he said.
Chan also said that the new KDU campus in Shah Alam will replace the existing campuses in Damansara Jaya and Section 13 in Petaling Jaya, which are parked under its subsidiary, KDU College Sdn Bhd.
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