KUALA LUMPUR - Paramount Corp Bhd officially launched its first integrated property project, Paramount Utropolis, comprising a mix of serviced apartments, small office home offices (SOHOs) and retail lots, yesterday.
Located in Glenmarie, Shah Alam, the 21-acre freehold project would include a 10-acre campus for KDU University College – which the company operates – comprising lecture halls, classrooms, a library, student accommodation and other amenities.
Paramount’s executive deputy chairman, Datuk Teo Chiang Quan, said the company, known for township projects, planned to develop more integrated projects in the future.
“The future is looking very bright for the company. The property development division has a combined gross development value (GDV) of RM7bil to RM8bil on current landbank,” he told a media briefing following the project’s launch.
The company’s future integrated projects include a 30-acre land parcel in Klang and the 5.18-acre KDU University College campus in Petaling Jaya’s Section 13, which is set to be redeveloped when the new campus in Glenmarie is completed.
Teo had earlier said in a speech that Paramount’s newest project marked, for the first time, the integration of the property development and education divisions in one place. “This is a first for our business and our brand,” he said.
Meanwhile, the company’s group chief executive officer, Chan Say Yeong, said the project’s serviced apartment, SOHO, retail and parking lot components would have a GDV of RM750mil to RM800mil and would take up to seven years to complete.
The campus, scheduled for completion in the first quarter of 2015, would cost about RM500mil in two phases.
The retail lots, which would be located in a 120,000-sq-ft retail centre, would not be for sale but instead be kept by the company for recurring income.
There would be three phases of serviced apartments and SOHOs, with a total of 1,500 units, to be progressively launched over the years. The first launch would be priced between RM550 and RM650 psf.
Chan said the company was exploring various options to fund the project. “We’ll probably finalise the financing towards the end of the month. It will be a combination of bank borrowings and funding through the capital markets,” he explained.
Besides Paramount Utropolis, the company recently launched the first phase of the 520-acre freehold Bukit Banyan township located in Sungai Petani and will soon be launching the first phase of the freehold 50.01-acre Sejati Residences in Cyberjaya.