08/09/2012 (Bernama) - The Terengganu State Farmers Organisation (PPNT) will invest RM5 million in the local real estate sector, starting with Dungun, by year-end.

Its general manager, Shawalludin Ahmad, said initially, the organisation would focus on building a commercial complex on the unoccupied land of the Farmers' Organisation Authority (LPP) in Dungun.

"We would like to focus on real estate development because many pieces of land belonging to LPP are unoccupied. This will help generate growth for PPNT," he told Bernama here today.

The LPP had two pieces of unoccupied land in Jalan Bijangga and Pulau Serai in Dungun, he said.

Shawalludin said in Jalan Bijangga, PPNT planned to build a four-storey building.

"The ground floor will be for retail trading, second and third floor as budget hotel and the top floor as multi-purpose hall which can be used for wedding ceremonies or seminars," he said.

He said the same type of project would be implemented in Pulau Serai, adding that each project would cost about RM2.4 million.

Shawalludin said PPNT has set up a subsidiary, Gapets Sdn Bhd, to undertake the two projects, which were expected to be launched soon.

He said PPNT would also buy a three-story building worth about RM1 million in Lapangan Terbang Sultan Mahmud to keep it as asset.

"We are definitely going to buy the building as it is strategically located in the town and will help boost PPNT earnings in the future," he said.

Shawalludin said PPNT was also keen to buy more buildings if it had the funds.

Other than that, he said, PPNT would help the state government develop unoccupied land either for agriculture or commercial purposes which would help boost the state's economy.

"For a start, we will develop 80 hectares in Sungai Tongkat Langkap, Setiu for palm oil next.

"We have to pool the association's resources and come up with RM1.5 million to start the project," he said.