China Press, 20 March 2014 - Tropicana net profit of RM 170 Million

China Press, 20 March 2014

Kuala Lumpur, 19 March 2014 - Tropicana Corporation Berhad (TROP, 5401) announced that it sold off 308.72 acres (124.93ha) of Klang Valley landbank for RM470.67 million in cash or RM35 per sq ft (psf) to Eco World Development Group Berhad (ECOWLD, 8206), expecting a net profit of 170 million ringgit.

The group’s announced that after the sales and purchase agreement was finalized, the end of the fiscal year will see an increase in earnings per share of 1.2 cents. Both companies witnessed the signing of the land purchase agreement , including Tropicana Corporation Berhad’s Executive Vice Chairman Tan Sri Dato’ Danny Tan , Chief Executive Officer Dato’ Yau Kok Seng and Group Managing Director Kong Woon Jun.

Local real estate big wig Tan Sri Liew Kee Sin and his son Group Executive Director Liew Tian Xiong of Eco World Development , Dato’ Zeng Jian Hua and Leong Kok Wah, also attended the signing ceremony .

Construction begins end of this year

According to the statement, the lot is located in southern Klang Valley , formerly known as Canal City, and now known as Tropicana Aman , Tropicana bought the land last March.
The group said it expects to launch Tropicana Aman’s first phase in the second half of this year, with an estimated gross development value of RM770mil.

Tan Sri Danny Tan said that the sale of the mixed integrated development is in line with its transformation strategy to unlock the value of its sizeable landbank, and monetise its assets to strengthen their balance sheet.

Dato' Chang Khim Wah also pointed out in a statement that the acquisitions are in line with the company’s strategy to acquire accessible landbanks. The current project’s construction is expected to commence by the end of this year, with a development period of about 8 years.

"The new project will be named EcoSanctuary, an integrated sustainable residential and commercial development plan, with a gross development value of about 8 billion ringgit ."
Currently, Tropicana Corporation Berhad possesses a total of 1960 acres of strategic landbank located in Greater KL, Iskandar Malaysia and Penang island, with an estimated future gross development value (GDV) of RM75 billion.