Nanyang Siang Pau, 20 March 2014 - Ecoworld used RM470 million to buy Tropicana Aman
Nanyang Siang Pau, 20 March 2014
Developing Townships in the Klang Valley area.
Eco World Sdn Bhd buys Tropicana Bhd land parcel for RM470mil
( Kuala Lumpur, 19 MAR ) Tropicana Corporation Berhad (TROP, 5401) announced that, at the price of 470 million ringgit, it sold off 308.72 acres of its southern Klang Valley land parcel to Eco World Development Group (ECOWLD, 8206) .
Tropicana Corporation Berhad and Eco World Development Sdn Bhd ceased trading for the latter part of the day to make their announcement. Both groups signed the agreement and the transaction is expected to be complete later this year.
Tropicana Berhad revealed that they had bought Tropicana Aman’s 1172 acres land parcel last April, at 35 ringgit per square foot.
Tropicana earned RM170 million
The sale and purchase agreement for this transaction is scheduled for completion in the second half of this year, while Tropicana Corporation Berhad made a net profit of RM170 million.
In line with this deal, the two sides signed an agreement today ; among them were Tropicana representatives, including Group Executive Vice-Chairman Tan Sri Dato’ Danny Tan , Chief Executive Officer Dato’ Yau Kok Seng , and Group Managing Director Kong Woon Jun ; Eco World representatives included Director Liew Tian Xiong , President, Chief Executive Officer and Director Dato’ Chang Khim Wah and Director Dato’ Leong Kok Wah.
Tan Sri Dato’ Danny Tan said: "As a leading developer for Tropicana Aman, the agreement is in line with our culture of sustainable development, to create a dynamic and unique independent community."
"This divestment activities coincides with our strategic transformation plan for accelerated growth and unlocking of value of the Group’s substantial asset base and land bank, ."
He added that the land acquired by the cash divested , will further strengthen Tropicana's platform and allows the company solid growth for the long term.
Development of residential and commercial industry
EcoSanctuary GDV worth 8 billion
Dato’ Chang Khim Wah said that the acquisition of the lot, meets Eco World’s continued effort to explore good opportunities for major growth and land acquisition; with the land purchase, he said: "We have the opportunity to develop towards Johor Bahru , with top Klang Valley industrial buyers, we will introduce a new ecologically-friendly living environment . "
Dato’ Chang Khim Wah expressed, Eco World will develop the land parcel with residential and commercial units, to be called EcoSanctuary, with a gross development value (GDV) of up to 8 billion ringgit.
“Since we are known in the Klang Valley for our brand of ' Eco-builders ' (EcoWorld), we have launched the town 's new sustainable township, we plan to fully develop the ability to include environmental concepts fitting for the name - EcoSanctuary.
The first phase of the industrial project, will contain luxury residential housing, with intelligent design aesthetics, but will emphasize sustainable residential fence and security elements . "
He added that this project is scheduled to start before the end of this year , with a development period of 8 years.
Tropicana Aman is located in the southern corridor of Klang Valley, adjacent to the well-established Putra Heights and Kota Kemuning, both have population groups with high salary income. Nearby is also schools with enrolments from Rimbayu township.
In addition, it is also accessible by four major highways , including KESAS highway, Lembah Klang - Shah Alam highway (LKSA), Southern Klang Valley Express (SKVE) and Elite highway.
Resuming trading today
With the announcement of the transaction, Tropicana Berhad and Eco World Development Sdn Bhd will halt trading at midday on Wednesday , and the two will resume trading again on Thursday ( March 20 ).