A  BILLIONAIRE foreign businessman has abandoned plans to build a lavish home at a peninsula beauty spot which locals feared could become a resort.

Far East Land and Housing Development’s Philip Ng, who bought a property calledYamba on Scotland Island last year for $7 million, has submitted plans to build a smaller family home at the site.

Locals were outraged at the former plan for a $3 million creation across two blocks, which the owners said would be used by themselves and company guests.

But locals, including members of Scotland Island Residents’ Association, feared it would become a “glorified function centre,” and held a picnic protest.

They said it showed “scant regard” for the island, despite assurances from the Far East Organization Australia Properties that they were not creating a holiday resort. But the company withdrew the plan after 90 submissions.

The new DA, which has been lodged with the former Pittwater Council, is for a $1.6 million, three-bedroom, two-bathroom home.

“The proposed development of the residence has been designed with the natural landscape in mind and is sensitive to the island environment,” he said.

“At each stage we have taken into consideration the valuable feedback from the local community.”

The Foreign Investment Review Board approved Mr Ng’s purchase.

He is worth $10 billion.