PARAGON Globe Bhd’s subsidiary, PGB Desa Heights Sdn Bhd, has secured a development rights agreement with Tropicana Danga Bay Sdn Bhd to launch its first serviced apartment project in Johor Bahru.

The project, set to achieve GreenRE Gold certification, involves developing two freehold land parcels within the Danga Bay waterfront development.

Paragon Globe will pay RM102.46 million to Tropicana Danga Bay, which is 10% of the projected net development value.

The project will feature four towers with 36 floors each, totaling 2,552 serviced apartment units.

Construction is set to begin in February 2025, with completion expected in about four years.

The estimated gross development value (GDV) is RM1.49 billion, with a projected gross development cost of RM1.15 billion, leading to an anticipated profit of approximately RM334.45 million.

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.

Paragon Globe shares closed 3.85% lower at 37.5 sen today, resulting in a market capitalisation of RM280 million. — TMR