Plenitude to buy land in Penang

PLENITUDE Bayu Sdn Bhd plans to acquire 27 parcels of freehold land for RM45 million in Penang's North East district to develop another residential project.

In a note to Bursa Malaysia today, the subsidiary of Plenitude Bhd said it would acquire the land from Geotrade Sdn Bhd-Eden Ferringhi Resort.

The acquisition is strategic as it would allow the group to tap on the success of the Bayu Ferringhi project in Batu Ferringhi, it said.

"The development of residential properties to be undertaken on the said land will not only provide Plenitude with a new sustainable source of income but it will also enhance its position in the property development sector," it said.

Plenitude Bayu, formerly known as Golden Valley Network Sdn Bhd has proposed to develop medium high-end, semi-detached houses and condominiums, with the target market being first and second home buyers, resort home buyers, expatriate community and Malaysia My Second Home applicants.

It said the purchase price of RM45 million for the parcels of land was derived after taking into account the development potential of the land arising from the surrounding matured housing and infrastructure.

It also took into account the established medium to high end, semi-detached and bungalow houses next to the land and the close proximity to Batu Ferringhi beach and town area.

The proposed acquisition is expected to be completed in the first half of the financial year ending June 30, 2011 and contribute positively to the group''s earnings in future years.

By Bernama