Kwong Wah Yit Poh - 11 August 2014 - Tropicana reached a consensus with two of Selangor organization to increase cost of purchased land

11 August 2014

Tropicana reached a consensus with two of Selangor organization to increase cost of purchased land

Kuala Lumpur, 10 August 2014 – Tropicana Corp. Bhd. (TROP, 5401, main market, property) has entered into a supplementary agreement with Menteri Besar Selangor (Perbadanan) (MBI) and Permodalan Negeri Selangor Berhad (PNSB) regarding the payment of land in Kota Kemuning ‘Canal City’.

As stated in the filing to Bursa Malaysia, Tropicana Corp. Bhd. said its wholly owned subsidiary Sapphire Index would pay RM173mil to Selangor State Government for the 308.72 acres of sub-sale land and Sapphire Index has agreed to sell it to subsidiary of EcoWorld Development Sdn. Bhd., Prominent Stream Sdn. Bhd.

The originally agreed payment for the above-mentioned sub-sale land was RM85mil, however, the updated price will be RM18.02 per sq. ft. as purchase price to the net area of 308.72 acres of developable land.

The above-mentioned 308.72 acres of land is part of the 1,172 acres of Canal City that purchased from Selangor State Government in April 2013. The total purchase price of this entire 1,172 acres of land is RM1.29bil, however Tropicana Corp. Bhd. only required to pay the minimum amount, while most of the amount dispersed in the development period.

Nevertheless, following the disposal of 308.72 acres of land to EcoWorld Development Sdn. Bhd. at RM470.70mil of cash, Selangor Menteri Besar, Tan Sri Dato’ Seri Abdul Khalid changed his mind on payment method. Later, he requested Tropicana Corp. Bhd. to cash in early demanding RM800mil to the state.