PETALING JAYA: Plenitude Bhd ’s wholly-owned subsidiary Plenitude International Sdn Bhd has entered into a sale and purchase agreement with the Employees Provident Fund (EPF) for the proposed acquisition of a 259-suite hotel, known as the Gurney Resort Hotel & Residences in Penang, for RM160mil.
In a filing with Bursa, Plenitude said Gurney Resort Hotel formed part of Menara Gurney, which is a 37-storey building with one basement level, a hotel along with retail and office components.
The retail units are located on the ground to second floor of the retail podium. The hotel has retail units and 551 car park bays.
The hotel is located approximately 4km to the north-west of the Penang ferry terminal and 3km from the state administrative centre in Kompleks Tun Abdul Razak.
Plenitude said that the price tag of RM160mil was arrived at after taking into consideration the strategic location of the property and the market value of the hotels in the surrounding vicinity.
“The proposed acquisition represents an opportunity for the company to expand its hotel business and operations, where the group currently owns Four Points by Sheraton Penang. It is expected to contribute positively to our future earnings,” said Plenitude.
Plenitude added that the acquisition would be financed by a mix of internally generated funds and bank borrowings
Plenitude was down four sen to RM3 on volume of 510,200 shares.
The company is in a financially strong position with no debt. Its cash and cash equivalents amounted to RM386.9mil as at March 31, 2014. For the third quarter to March 31, 2014, Plenitude’s net profit was up 89.3% to RM23.14mil on the back of a 80.58% increase in revenue to RM72.7mil.