Saturday, November 18, 2006

New Hotel in Johor by Plenitude

Plenitude to streamline sources of earnings

KUALA LUMPUR: Although the residential property sector should continue to contribute 60% to group earnings, Plenitude Bhd is looking to streamline its sources of revenue to include more recurring income-generating entities.

Acting chief operating officer Khoo Yek San said it was within the group’s plans
to build a boutique hotel in Taman Desa Tebrau in Johor, an area that Plenitude
also had other developments, in the next five to seven years.
She said such endeavours would enable the company to delve deeper into recurring income-generating properties.

“Even for our Changkat View Condominium here, while we have launched three of four blocks up to April, with 85%, 75% and 50% sales respectively, we are considering turning the fourth block into serviced apartments,” she told a media conference after the group’s AGM yesterday.
Plenitude executive chairman Elsie Chua said the group’s land bank of 1,900 acres, with a gross development value of RM4.1bil, should put the company in good stead for the next 10-15 years.
Chua said the property developer was still looking to acquire more land, preferably in the Klang Valley or Penang. While also not ruling out land acquisition overseas, she said Plenitude was, however, not in any negotiation at the moment.

“We do not deny the local property sector is experiencing a slight slowdown, but we are confident our strategic land bank would produce better financial results for us,” she said, adding that Plenitude would continue with its strategy of building a mixture of luxury and affordable homes.

Having also acquired 10.6 acres of prime freehold land in Batu Ferringhi in Penang, Chua said the group could decide to build niche residential property there.
Khoo also said Plenitude was not considering going into the real estate investment trust market at present.

For the year ended June 30, Plentitude's revenue rose 14.5% year-on-year to RM221.1mil, while net profit increased 6.9% to RM52.4mil. Net earnings and net assets per share were at 38.8 sen and RM3.51 respectively.

News Source : STAR

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