KUALA LUMPUR (Dec 9): Paragon Globe Bhd (KL:PGLOBE) has mutually agreed to terminate its memorandum of understanding (MOU) with Solarvest Holdings Bhd (KL:SLVEST) to explore a renewable energy-focused industrial development, following the group's sale of land to a data centre company.

According to the Johor-based property developer, the MOU, which was signed on Feb 2 with Solarvest and focused on developing a green industrial township within DESA 100, is now considered irrelevant due to the land sale.

The termination aligns with the group’s strategic restructuring of the Desa Cemerlang project in Johor, which includes the disposal of 67.62 acres of freehold land within DESA 100 to Bridge Data Centres Malaysia IV Sdn Bhd (47.86 acres) and Bridge Data Centres Malaysia VI Sdn Bhd (19.76 acres), collectively known as Bridge Data Centres Malaysia, Paragon Globe said in a statement.

“The decision to terminate the MOU with Solarvest was made after careful consideration of the evolving landscape of our Desa Cemerlang project,” said Paragon Globe executive chairman Datuk Seri Edwin Tan Pei Seng.

“However, we remain steadfast in our commitment to sustainable development and ESG (environmental, social and governance) principles. We value our partnership with Solarvest and look forward to exploring future collaborations once our revised plans are finalised.

“Our vision for Desa Cemerlang remains unchanged: to create a vibrant industrial hub that aligns with market needs, ESG goals, and the aspirations of Johor’s stakeholders. We thank Solarvest for their understanding and look forward to collaborating with them in the future,” he added.

For the six months ended Sept 30, 2024 (6MFY2025), Paragon Globe booked RM14.82 million net profit against RM411,000 net loss reported a year earlier, as revenue tripled to RM84.07 million from RM26.24 million, primarily attributed to land sales in Desa Cemerlang.

Paragon Globe shares closed unchanged at 37.5 sen, valuing it at RM280 million. The stock has risen over 70% year-to-date.

Meanwhile, Solarvest closed unchanged at RM1.59, valuing it at RM1.15 billion.