Plenitude to see RM400m in projects by FY2011

KUALA LUMPUR: Property developer Plenitude Bhd planned to launch seven projects — valued at about RM400 million in total — in its financial year ending June 30, 2011 (FY2011).

Speaking to a press conference on Thursday, Oct 28, chairman Elsie Chua said the launches were located at Taman Desa Tebrau in Johor, Taman Putra Prima in Selangor, Bandar Perdana and Lot 88 Perdana Heights in Sungai Petani. They are a mix of residential and commercial developments of landed and high-rise properties.

However, Chua declined to reveal the exact launching date.

"Everybody said the market is good, and there are many purchasers. It is a good sign, but many people forecast that 2012/2013 won't be a good period because the downturn will come again. This coming year is picking up, and it has been good since the beginning of this year," she added.

Plenitude currently has projects in Johor Bahru, Puchong, Sg Petani and Kuala Lumpur, with main developments being affordable houses, which pricing benchmark varies depending on locations.

Over the next two years, the developer will roll out the construction of a new township project in Balik Pulau in Penang, on a 52.63-acre freehold plot it recently acquired for RM40.12 million. As the company's first township in Penang, the mixed development has a gross development value of RM230 million and will comprise terrace houses, superlink homes and a neighbourhood commercial centre.

The company has an annual earnings and net profit growth target of 5% to 10%, which Chua said has been the trend for the past 10 years. She expects FY2011 to see similar growth, sustained by its ongoing township developments. Its dividend policy is 20% to 25% of its net profit.

Pkenitude's net cash position now stands at RM325 million, and it is looking to acquire more landbanks in Klang Valley for both township and niche developments. Currently, the developer has a landbank of 1,800 acres, which can last for at least 10 years.

Plenitude has also been looking for overseas projects in countries like Vietnam, Cambodia and Laos but nothing is concrete.
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