KUALA LUMPUR (March 5) — Paramount Corp Bhd is setting a higher sales benchmark for the year ahead, aiming to achieve RM1.2 billion in property transactions while maintaining healthy margins despite rising geopolitical tensions in the Middle East.
Speaking during a recent earnings briefing, chief executive officer Jeffrey Chew expressed confidence that cost pressures will remain manageable. He noted that the company’s supply chain is largely domestically sourced, reducing direct exposure to global disruptions. While indirect cost fluctuations may arise, local demand fundamentals — particularly among Malaysian homebuyers — remain supportive.
The group recorded RM1.03 billion in property sales in 2025, providing a solid foundation for its 2026 growth trajectory. It also expects its RM1.1 billion pipeline of planned launches next year to proceed without delays.
Residential Segment Leads Performance
Residential projects accounted for 89% of total sales last year, with commercial developments contributing 11%. Among the strongest performers were:
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The Atera, a transit-oriented development near the Asia Jaya LRT station in Petaling Jaya
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The Ashwood, a high-end residential project in Kuala Lumpur
The Atera’s success highlights the continued appeal of developments with direct rail connectivity in Selangor, particularly in mature locations like Petaling Jaya. This aligns with broader demand trends benefiting commercial property in KL and transit-linked office space in Bukit Jalil and surrounding growth corridors.
Expanding Pipeline Across Northern and Central Regions
In 2025, Paramount rolled out five projects across Penang, Kedah and Selangor with a combined gross development value (GDV) of RM808 million. The group currently has eight active developments. However, three projects — Berkeley Uptown, Greenwoods Salak Perdana and Sejati Residences — have recorded take-up rates below 50%.
Management has formed a dedicated internal task force to enhance sales performance and reposition these developments to improve absorption rates.
Asset Monetisation to Fund Higher-Return Developments
Despite ongoing efforts to unlock value from non-core assets, Paramount does not intend to distribute a special dividend. Instead, proceeds will be reinvested into higher-yielding property developments.
The group holds approximately RM900 million worth of non-core assets, generating relatively low returns of around 1% ROE. These include:
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University of Wollongong Malaysia
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UOW Malaysia KDU Penang University College
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Mercure Kuala Lumpur Glenmarie
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Utropolis Marketplace
The strategy is clear: recycle capital from low-yield assets into projects capable of delivering stronger returns, particularly within high-demand property segments.
Improving Profitability and Long-Term ROE Goals
Although revenue declined 9% to RM946.87 million in FY2025, net profit rose 16% to RM118.82 million. This was supported by gains from the disposal of its Anson Campus for RM75 million and contributions from newly acquired Envictus International Holdings Ltd.
Return on equity improved to 8.3% in FY2025. The company is targeting 9% ROE this year and aims to achieve at least 10% by 2030.
Implications for KL & Selangor Industrial and Commercial Property
Paramount’s reinvestment strategy and continued focus on Klang Valley developments reflect sustained confidence in the region’s real estate fundamentals.
As residential nodes expand in Petaling Jaya, Kuala Lumpur and Selangor, demand spillover typically supports:
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Industrial land in Selangor
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Factory in Puchong
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Industrial property in Subang area
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Office space in Bukit Jalil
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Commercial property in KL
Transit-oriented developments such as those near Asia Jaya reinforce the importance of connectivity — a key driver not only for residential demand but also for office space in Bukit Jalil and emerging business hubs across the Klang Valley.
Meanwhile, economic resilience and domestic consumption support the broader ecosystem, strengthening the long-term outlook for industrial land in Selangor and logistics-oriented factory developments in Puchong and Subang.
For investors and occupiers focused on industrial property in Subang area or commercial property in KL, the continued capital recycling by established developers signals confidence in Malaysia’s urban growth story — particularly within Kuala Lumpur and Selangor’s integrated live-work-invest environment.
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