PGB Desa Heights Sdn. Bhd. (PGB Desa Heights), a wholly owned subsidiary of Paragon Globe Berhad (PGB) has entered into a Development Rights Agreement with Tropicana Danga Bay Sdn. Bhd. (Tropicana Danga Bay). This landmark agreement marks the beginning of PGB’s first serviced apartment project in Johor Bahru which is set to achieve the GreenRE Gold certification, reflecting PGB unwavering commitment to sustainable development.
During a ceremony held in Johor Bahru, Dato’ Sri Edwin Tan Pei Seng, Executive Chairman of PGB, and Karen Lee, Director of Tropicana Danga Bay, signed the agreement to formalise their collaboration.
Under the agreement, PGB Desa Heights is granted the rights to develop two prime freehold land parcels within the Danga Bay integrated waterfront development in Johor Bahru. In exchange, the Company will pay Tropicana Danga Bay RM102,458,027.43, which represents 10% of the projected Net Development Value (“NDV”) of the project.
The project will consist of four towers, each comprising 36 floors with a total of 2,552 serviced apartments units. Construction is set to commence in February 2025 and is expected to be completed over approximately four years. The estimated Gross Development Value (GDV) is around RM1,486.18 million, with an expected gross development cost of about RM1,151.73 million. This projection indicates that the Company expects to realise a profit of approximately RM334.45 million from the project.
This collaboration represents PGB’s first venture into the serviced apartment market, marking a significant expansion beyond its previous focus on commercial and industrial properties. This development underscores PGB’s commitment to evolving and diversifying its property portfolio.
Strategic Location: Prime Land in Danga Bay
This development focuses on two prime freehold land parcels, measuring approximately 3.51 acres and 3.62 acres, located along Persiaran Abu Bakar Sultan within the renowned Danga Bay integrated waterfront development. Situated in the Flagship A: Johor Bahru City corridor of Iskandar Malaysia, this site benefits from excellent connectivity, being just 7 kilometers from Johor Bahru’s Central Business District and easily accessible via the Iskandar Coastal Highway and major roads.
Dato’ Sri Edwin Tan Pei Seng commented, “We have always been confident in the growth of Johor Bahru’s housing market and with the Johor Bahru-Singapore RTS Link set to commence operations by 2027, we anticipate 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.”
Karen added, “Tropicana Danga Bay welcomes more like-minded partners to collaborate and contribute to the significant growth in Johor.”
This development is expected to generate substantial economic benefits further contributing to Johor Bahru’s ongoing transformation into a thriving metropolitan hub.
