BUTTERWORTH (Jan 30): Amid economic uncertainties, Penang-based property developer and builder PLB Engineering Bhd remains confident on its four residential and mixed development projects in the state, which has a combined gross development value (GDV) of RM350 million. 

The projects comprise the final phase of Prestige III (mixed development) in Balik Pulau with a GDV of RM140 million, 98 Nibong Residence (high-end condominium) in Sungai Nibong (RM50 million GDV), 220 units of high-end condominium units in Zoo Road, Air Itam (RM150 million GDV) and a landed development in Pokok Sena (mainland) with a RM10 million GDV.

“The weakening ringgit and implementation of the goods and services tax (GST) will have an impact on the economy. But we believe our development projects will do well. The units are reasonably priced from RM500,000,” said executive chairman Datuk Seri Ong Choo Hoon after chairing the group’s annual general meeting on Thursday.

He also shared that PLB owns about 400 acres of land in Penang and Kedah with a total land value of RM300 million.

Meanwhile, Ong said the group will begin work on the abandoned Majestic Heights affordable housing project in the first quarter of the financial year ending Aug 31, 2016 (FY16). The project comprises 7,658 units of affordable homes with a total value of RM2.5 billion.

“We have received the minimum of 220 purchasers to commit to the revival of Phase 2A of Taman Terubong Indah (Majestic Heights), and they have agreed to contribute RM10,000 for us to begin the project.

“Once we receive the commencement of work certificate, we can start the project. However, it is still subject to the affordable housing’s development layout approval, which has been submitted to the state planning committee,” he said.

PLB was tasked to revive the 18-year-old abandoned project as part of a condition after it purchased 14 pieces of vacant and project lands.

Meanwhile, the group will start building the recycling facility in Pulau Burung sanitary landfill in Seberang Perai Selatan in March, said Ong.

“We will be investing RM100 million over a five-year period to build this one-of-a-kind recycling treatment plant. We are using high technology and five lines to sort out the rubbish,” he added, citing that PLB expects to recoup its investment within eight years.

The group holds a 20-year concession to manage the Pulau Burung sanitary landfill site.

PLB (fundamental: 0.8; valuation: 1.2) closed 1 sen lower at RM1.72 on Thursday, with a market capitalisation of RM142.1 million. The counter was recently picked as a “stock with momentum” by The Edge Research.