Wednesday 26 March 2014

Paramount buys land in Batu Kawan to build university college and mixed development

PETALING JAYA: Paramount Corp Bhd has purchased 30 acres of freehold land in Batu Kawan, Penang for RM67mil from Penang Development Corp (PDC) to build a university college and mixed development project
The land for the future KDU College Penang was priced at RM40.50 per sq ft while the land for the proposed mixed development was priced at RM55 per sq ft. It is located 5 minutes from the Second Penang Bridge at Bandar Cassia, a new township in Province Wellesley.
Under the agreement, Paramount will build Penang’s first university metropolis in Batu Kawan. The metropolis will be developed by Paramount Property, the property development arm of Paramount, and will be anchored by a new purpose-built campus for KDU Penang, owned by Paramount’s KDU Education Group.
The acquisition will be funded through internally generated funds and bank borrowings.
“In addition, Paramount is required to complete and commence the development of the education component within 5 years. It is also required to complete the integrated development within 10 years, both from the agreement date. It is to obtain all approvals from relevant authorities and complete the development at its own cost,” Paramount said in a statement.
Paramount told Bursa that the rationale for the deal is to increase the group’s land bank at locations with strong growth potential and to strengthen the group’s long-term sustainability by synergising the two core businesses of property development and provision of educational services.
The deal is in line with PDC’s policy to promote and sell land to attract catalyst projects in Bandar Cassia, and to provide services that will help complement the area’s industrial and housing development sectors. - The Star

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