KUALA LUMPUR: Paragon Globe Bhd's subsidiary, PGB Desa Heights Sdn Bhd has entered into a development rights agreement with Tropicana Danga Bay Sdn Bhd to develop its first serviced apartment project in Johor Bahru.
In a statement today, Paragon Globe said this landmark agreement marks the beginning of its first serviced apartment project in Johor Bahru which is set to achieve the GreenRE Gold certification.
"Under the agreement, PGB Desa Heights is granted the rights to develop two prime freehold land parcels within the Danga Bay integrated waterfront development in Johor Bahru.
"In exchange, the company will pay Tropicana Danga Bay RM102.46 million, which represents 10 per cent of the projected net development value of the project," it said.
Paragon Globe executive chairman Datuk Sri Edwin Tan Pei Seng said the company has always been confident in the growth of Johor Bahru's housing market.
Tan said with the Johor Bahru-Singapore RTS Link set to commence
operations by 2027, the company anticipates a strong demand for quality and sustainable serviced apartments in the region.
"This project aligns with our vision to meet the evolving needs of the community and capitalize on the opportunities presented by this transformative infrastructure development," he said.
According to Paragon Globe, the project will consist of four towers, each comprising 36 floors with a total of 2,552 serviced apartments units.
It said the construction is set to commence in February 2025 and is expected to be completed over approximately four years.
"The estimated gross development value (GDV) is around RM1.49 billion, with an expected gross development cost of about RM1.15 billion.
"This projection indicates that the company expects to realise a profit of approximately RM334.45 million from the project," it added.