KUALA LUMPUR (April 15, 2013): Property developer Plenitude Bhd will launch five projects worth RM1.27 billion in gross development value (GDV) on its existing and new land plots for its next financial year ending June 30, 2014 (FY14), said its executive chairman Elsie Chua.
The launches include semi-detached homes and serviced apartments with a GDV of RM140 million and RM600 million respectively, within its Taman Desa Tebrau development in Johor Baru, as well as link houses in Taman Putra Prima, Puchong with a GDV of RM250 million.
It will also launch semi-detached and link houses in Bukit Bintang, a new township beside its existing Bandar Perdana township in Sungai Petani, Kedah, which will have a GDV of RM90 million as well as a condominium project in Penang worth RM190 million.
Meanwhile, Chua warned that Plenitude is unlikely to meet its sales target for FY13 as some of its launches were deferred to FY14. It was reported last November that the company had set a sales target of RM300 million for FY13.
"We'll try to get as close as possible to our target, but if we don't hit it, it's largely because of deferments due to some planning upgrades or changes and approval delays," she told reporters at the signing ceremony between Plenitude and Starwood Hotels & Resorts Worldwide, Inc last Friday.
Chua said the company currently has 1,710 acres of undeveloped land in Johor Baru, Puchong, Sungai Petani and Penang, which will take it 10 years to develop.
One of its recently acquired land is a 1.1-acre plot of land next to the Komtar building in George Town, Penang, which it had bought for RM33 million.
"We're still in the planning stage. Most of our developments are (to build) affordable (housing), with some in the slightly higher range. For the newly-acquired land near Komtar, it has to complement the building," she said, adding that Plenitude is looking to buy more land in the Klang Valley, Penang and Iskandar Malaysia, Johor.
Earlier, Plenitude signed a partnership with Starwood for the conversion of its only hotel, Tanjung Bungah Beach Hotel in Penang into a five-star Four Points by Sheraton Penang, which will reopen in July or August this year.
The hotel was closed in July last year for renovation and upgrading works that cost RM35 million.
The 220-room hotel, which saw an occupancy rate of between 50% and 60% prior to its closure and an average room rate (ARR) of RM130, is expected to enjoy higher occupancy and average room rates after the face-lift and brand upgrade.
"The Penang (hotel) market is very competitive. But we feel we'll be able to drive the rates higher than what it was (before) as the hotel will be completely transformed. The design will be different and rooms will be bigger," said Starwood Hotels & Resorts regional vice-president for Southeast Asia, Chuck Abbott.
"We feel that we're well positioned once the hotel opens, to provide returns very quickly to the owner (Plenitude)," he said.
Starwood currently manages 11 hotels and resorts in Kuala Lumpur, Langkawi, Kota Kinabalu, Sandakan and Kuching.
The hotel operator's third largest brand, Four Points by Sheraton, has the second biggest global pipeline within the company with 161 Four Points by Sheraton hotels in 27 countries.
Posted on 15 April 2013 - 05:40am
