Paramount aims to launch RM1bil properties by next year

KUALA LUMPUR: Paramount Corporation Bhd aims to launch properties worth RM1 billion by next year as sales momentum continues to be strong for the property industry.

Group chief executive officer and director Jeffrey Chew Sun Teong said the company is optimistic about achieving the sales target given its robust performance during the first half of 2023.

“We need to have a revenue of RM1 billion or more. This means that our property launches will have to be worth more than RM1 billion,” he told reporters after the company’s 1H FY2023 results briefing here today.

Furthermore, he said the company used to have only one area in the northern region but now, it has two areas namely Batu Kawan, Penang and Sungai Petani, Kedah.

He said the company also intended to have more land in Klang, Selangor as a new area for its first launch.

“We got more land there and I think Klang is an area where we really make our presence felt and our first residential namely Berkely Uptown, Klang do well before we jump into developing a commercial hub.

“Hopefully, that will rejuvenate the place and can actually able to launch more,” he said.

He said the company is also looking at five to six locations in Klang Valley and two locations in the northern region that they are anchored in to buy more land.

Additionally, he said Paramount Corporation is looking to develop another project in Bangkok, Thailand after the launching of Na Reva, a 29-storey premium condominium project.

Meanwhile, Chew said the company is targeting to launch RM700 million worth of properties in the second half of 2023 (2H2023) anchored by The Ashwood at the prestigious U-Thant enclave, Kuala Lumpur.

“Apart from new launches, the demand for its existing products is expected to be resilient for the rest of the year given the good response received,” he said.

He said although the demand for the property sector currently has reverted to a normal level as before the pandemic, the supply of property development, especially in the urban areas, has significantly decreased.

Chew said the company’s new record of unbilled sales of RM1.5 billion as of June 30, 2023 would provide some visibility on its cash flow in the near term.

“However, the pace at which this can be converted into billings would depend largely on the construction progress of projects,” he said.

As of June 30, 2023, the company’s undeveloped land stood at 196.92 hectares.

The property division sold RM617 million worth of properties in 1H2023, which is 45 per cent higher than that of the same period last year.

Chew said the company’s coworking division would also be scaling up its operations in the second half of 2023.

He said this included the expansion of its existing Tropicana Gardens outlet and the opening of two new spaces in the Klang Valley.

“All five spaces recorded a year-on-year improvement in occupancy on the back of continuous growth of the economy.

“The top three spaces in terms of revenue contribution are Shah Alam, Starling Mall and Naza Tower,” he added. – BK