KUALA LUMPUR (Nov 5): Property developer Plenitude Bhd is targeting to achieve RM300 million in gross development value (GDV) sales, despite delays in its property launches for the financial year ending June 30, 2013.
Speaking to reporters after the group's annual general meeting Monday morning, Plenitude executive chairman Elsie Chua said the group is planning to launch 638 units of residential properties next year with a total GDV of RM313 million.
"We are still cautiously optimistic moving forward, but we are already looking at launching two phases in Puchong, serviced apartments in Johor Bahru and one more in Sungai Petani," Chua said.
However, Chua noted that unexpected delays in obtaining regulatory approvals have pushed back Plenitude's property launches to early next year.
"We are still in the midst of obtaining approvals and there have been some delays. Hopefully, we can launch our Puchong development sometime by April next year," she said.
While this small-cap property developer has kept a relatively low profile, Plenitude's recent acquisition of the 1.1 acre land adjacent to Komtar in Penang could draw some attention to the group and it's plans for the prime Georgetown land.
"This will be quite an interesting project for us. We recently bought the land for RM33 million. We're still working out the details on our plans for it but it will be a mixed commercial development," Chua added.
As at June 30, 2012, Plenitude's land bank size stood at around 1,797 acres while total current and future GDV is estimated to be around RM6.3 billion.
Another thing worth highlighting about Plenitude is that the group is in a net cash position, something that is not often present in other property developers.
"Unlike other property developers in the market, this company basically has no gearing. We think holding cash especially during uncertain times in the economy is a good thing especially when a sudden opportunity to increase our land bank size appears," said William Tan Yew Ngee, the group's executive director.
The group has a cash and cash equivalent position of RM355.4 million and nil borrowings as at June 30, 2012. Net asset per share stood at RM3.13. - The Edgeproperty
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