KUALA LUMPUR, June 23 (Bernama) -- Johor-based property developer Paragon Globe Berhad (PGB) is positioning itself for sustained growth in the industrial and residential sectors, supported by strategic projects and Johor’s buoyant economic prospects, following a record-breaking financial performance in its recently concluded financial year.
For the financial year ended March 31, 2025, PGB achieved a remarkable net profit of RM105.6 million, reversing a previous year’s net loss of RM1.2 million. Revenue surged to RM306.3 million from RM51 million the year before, primarily driven by strategic land disposals and robust industrial property sales.
PGB’s Executive Chairman Dato' Sri Edwin Tan Pei Seng explained the strong performance was largely attributable to a RM337.3 million disposal of 67.6 acres of industrial land at Desa Cemerlang to Bridge Data Centres.
Paragon Globe Berhad, Executive Chairman Dato' Sri Edwin Tan Pei Seng
“Apart from strategic land sales, we experienced high demand for industrial developments at Pekan Nenas, significantly contributing to our earnings," Edwin Tan added. "Looking ahead, our growth will be underpinned by residential launches such as Calia Residences and The Iconic at Stulang Laut, along with continued industrial projects."
PGB recently opened its flagship RM10 million PGB Experience Gallery in Johor Bahru, aimed at enhancing customer engagement and centralising sales activities across its diverse project portfolio.
Calia Residences, PGB’s first residential development located strategically in Danga Bay, has garnered over 1,200 expressions of interest. The project is targeting GreenRE Gold certification, aligning with Johor Bahru’s sustainable urban development initiatives.
Edwin highlighted the strategic advantage of PGB’s industrial projects—Desa 27 and DESA 100—which are ideally located to leverage the burgeoning Johor-Singapore Special Economic Zone (JS-SEZ). These projects have successfully attracted prominent multinational tenants, including Hunter Amenities International and Meiban Technologies, through their tailored "Design-and-Build" concept.
Regarding recurring income, PGB’s 121-bed Sepang Medical Centre, developed in collaboration with Selgate Healthcare, is scheduled to commence operations in Q4 2025, with a projected rental income of approximately RM200 million over a 15-year lease. Edwin noted that the company continues to carefully evaluate various strategic options for its healthcare assets, which may include further expansion, collaborations, or monetisation, depending on market conditions and strategic alignment.
"We are actively exploring various recurring income streams beyond healthcare, such as industrial facilities, worker accommodations, and commercial assets, to diversify and stabilise our revenue," he added.
Despite global economic uncertainties, Edwin expressed optimism about Johor’s property sector, buoyed by initiatives such as the JS-SEZ and the Johor-Singapore Rapid Transit System (RTS) Link.
"PGB remains committed to resilience, diversification, and sustainability, positioning ourselves to adapt swiftly and effectively to market changes," Edwin concluded.
On shareholder returns, Edwin said the company was actively reviewing its capital allocation strategy, including the possible introduction of a structured dividend policy, balancing prudent reinvestments with shareholder rewards.
"Despite global economic uncertainties, we remain optimistic about Johor’s property market outlook, driven by sustained regional growth initiatives. PGB remains committed to resilience, diversification, and sustainability, positioning ourselves to adapt swiftly and effectively to market changes," concluded Dato’ Sri Edwin.
SOURCE : Aegis Communication on behalf of Paragon Globe Berhad (PGB)