The real estate developer said its wholly owned unit, Tanah Bayumas Sdn Bhd, has signed a sale and purchase agreement (SPA) with Prismaworld Embassyview Sdn Bhd to purchase the land and six blocks of five-storey condominium buildings with a sub-basement one-storey car park, according to a filing on Thursday.

As of end-September, 44% of the 93 condominium units, known as Brunsfield Residence, were tenanted.

Paramount said the acquisition aims to replenish its land bank at strategic locations with strong growth potential, where the company has gained a positive track record. The property is close to the group’s existing high-end residential developments, namely The Atrium (100% take-up rates) and The Ashwood (72% take-up rates).

“This will enable Paramount to replicate the success of these two developments to launch another viable development in the vicinity with speed-to-market efficiency,” it said.

Upon completion of the acquisition, Paramount plans to redevelop the property into high-end residential units and sell them as strata titles. 

“With a projected gross development value [GDV] of not less than RM300 million to be generated from the proposed development over a period of five years, the proposed acquisition will strengthen the group’s current total GDV of RM6.22 billion and contribute positively to the future earnings of the group,” it said.

The acquisition will be funded through a combination of internally generated funds and bank borrowings, which will be decided later, considering its debt level, interest costs and cash requirements for its business operations. 

The group has cash and bank balances of RM172.99 million, with borrowing amounting to RM876.57 million as at end-September 2024, according to its latest financial statement.

"The proposed acquisition is expected to be completed within six months from the date of execution of the SPA, and the proposed development is expected to commence within one one year from the completion of the SPA, and to be completed over a period of five years,” it added.

Shares of Paramount settled down two sen or 1.89% to RM1.04 on Thursday, giving the group a market capitalisation of RM647.68 million.