KUALA LUMPUR (July 14): Paragon Globe Bhd (KL:PGLOBE) has proposed to acquire a further 195.6-acre portion of a 256.7-acre freehold land in Sedenak, Johor, for RM127.28 million cash, to develop an industrial park with an estimated gross development value (GDV) of RM1.69 billion.

In a Bursa Malaysia filing, PGB said the acquisition, together with its earlier RM13.86 million purchase, would give the group a total beneficial interest of about 218.1 acres in the land, with a combined investment of RM141.14 million.

The land acquisition will be treated as a single transaction under Bursa Malaysia’s rules as both deals were made within 12 months and involve the same land parcel. PGB is also in talks to acquire the remaining 159/1,000 interest, although there is no guarantee the deal will proceed.

Located in the Kulai-Sedenak flagship zone of the Johor-Singapore Special Economic Zone (JS-SEZ), the land is positioned to benefit from rising industrial demand and investment flows into Johor.

PGB plans to develop the site into an integrated industrial park comprising factory units, commercial space and a 360-unit workers’ hostel that can accommodate up to 5,400 workers. The project is estimated to generate RM1.69 billion in GDV and RM430 million in gross development profit over eight years.

The company said the acquisition supports its strategy to expand its land bank and strengthen its future property development pipeline. The deal will be funded through bank borrowings and internal funds, and remains subject to shareholders’ approval.

PGB executive chairman Datuk Seri Edwin Tan Peng in a statement said the acquisition provides the group with a strategic position in the JS-SEZ and allows it to pursue larger industrial developments based on market demand and approvals.

According to AskEdge, the company’s shares are currently trading at a price to earnings ratio of 8.6 times, higher than of its peers like Plenitude Bhd (KL:PLENITU), which is trading at a PE ratio of 5.1 times, and Paramount Corp Bhd, (KL:PARAMON) at 5.2 times.

PGB’s share price ended unchanged at 80 sen a share on Tuesday, valuing the company at RM597.3 million. Year to date, the stock is up 30.08%.