PLB buys Penang property developer for RM23.5mil

KUALA LUMPUR: PLB Engineering Bhd has acquired property developer Phoenix Residences Sdn Bhd (PRSB) for RM23.5mil.

The property development firm, whose shares were last month reclassified from construction sector to properties sector, told Bursa Malaysia that its unit PLB Land Sdn Bhd signed an agreement on Monday to acquire 100% equity interest in Penang-based PRSB.

PLB’s announcement did not specify the size of PRSB’s landbank or its exact location in Penang.

However, it said PRSB’s property came with approved development plans and development license already issued by the Urban Wellbeing, Housing and Local Government Ministry, making the asset a very marketable property.

“The value of RM23.5mil is justified considering the location of the property at the Penang Island, near amenities and infrastructure like the Second Bridge with much potential for value appreciation,” it added.
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PLB said that based on PRSB’s audited financial statements for the year ended June 30, 2014, the company was in a net assets position of RM112,066 with a net loss for the year of RM76,906.

PLB shares were last traded at RM1.45 last Friday.