Malaysian property developer Paragon Globe Bhd yesterday received shareholders’ approval for its proposed sale of 65 acres of land in Iskandar Puteri, Johor, to a unit of Singapore-based DayOne Data Centers Ltd for RM398.11 million (US$100 million).
In June, w.media reported about the sale which was pending shareholders’ approval then.
DayOne is purchasing the two parcels of land through its subsidiary DayOne Data Centers Malaysia III Sdn Bhd (DDCM), in cash. It plans to build a data center on this land.
The sale, through Paragon Globe’s wholly owned subsidiary, PGB Landmark Sdn Bhd, is expected to generate a net pro forma gain of RM187.43 million which will be used to pay down borrowings, as working capital and to acquire other land and properties, the company said in a press statement.
As at end September, PGB Landmark had received RM228.91 million, almost 58 per cent of the purchase price, as stipulated under the sale and purchase agreement. The transaction is expected to complete in 2H 2027.
“Instead of tying up our cash for years to build factories on this site, we decided it was smarter to accept a good offer on the land. Once completed, the disposal will allow us to put more capital into our ongoing projects, build up our rental-income assets and reduce some borrowings. We want to keep growing, but liquidity must always come first,” said Paragon Globe executive chairman Datuk Seri Edwin Tan Pei Seng.