KUALA LUMPUR (Oct 13): Paragon Globe Bhd (KL:PGLOBE) has entered into a related-party transaction to acquire three parcels of land in Johor for RM11.48 million from its executive chairman Datuk Sri Edwin Tan Pei Seng and Datuk Seri Godwin Tan Pei Poh, with plans for affordable housing development.

According to its filing with Bursa Malaysia, the 11.84-hectare site is being acquired from Common Development (M) Sdn Bhd, a company jointly owned by Pei Seng and Pei Poh, who hold 65% and 35% stakes respectively.

Through their investment vehicle, Paragon Adventure Sdn Bhd, the two also collectively control 56.79% of Paragon Globe.

The acquisition is intended to meet the development requirements outlined by the Johor Housing Development Corporation (PKPJ) for affordable housing. In line with this directive, Paragon Globe plans to develop a residential project on the site under the Johor affordable housing programme, in accordance with PKPJ’s planning and design guidelines.

Located along Jalan Besar in Simpang Renggam, Johor, Paragon said the land offers strong connectivity and is surrounded by established residential, commercial and industrial zones. Its proximity to the North-South Expressway and nearby amenities enhances its suitability for affordable housing development.

It added that the move also broadens the group’s development portfolio, balancing residential, industrial and affordable housing projects while diversifying its revenue streams and supporting sustainable growth.

The transaction is expected to be completed within nine months from the date of the sale and purchase agreement, it added.

By Monday’s closing, Paragon Globe shares were down 2.5 sen or 3.6% at 67.5 sen, valuing the group at RM504 million. Year to date, the stock has gained 85%.