The Star, 19 January 2014 – Tropicana's transformation as a premier developer

The Star, 19 January 2014

Tropicana Corporation Bhd, formerly Dijaya Corporation Bhd, is all set for strong growth ahead as it enters 2014, judging from its past year’s performance, well-received new launches and transformation initiatives. The group is also on track to achieve its vision as a premier developer in the country, given its strong presence in the key growth areas in the central, southern and northern regions. A large part of the credit goes to its impressive sales performance for its ongoing key projects such as Tropicana Grande and Tropicana Avenue in Greater Kuala Lumpur (KL) and Tropicana Danga Bay project in Iskandar Malaysia, Johor where its first phase of Tropez Residences, has been fully sold and is expected to be completed by end of 2014.

Meanwhile, its second phase, Bora Residences, with sizes ranging from 694sq ft for a 1+1 bedroom to 3,443sq ft for a 4+1 bedroom penthouse with a private pool, has opened for sales. This phase will be infused with generous landscapes and water features. The group’s recent new launches – Bayberry Serviced residence at Tropicana Gardens, Pandora Serviced residence at Tropicana Metropark in Subang and Tropicana Bay Residences in Penang Worldcity (PWC), Bayan Mutiara, Penang – which enjoyed strong take-up averaging over 80%, is testimony to the group’s brand appeal, design and development concepts.

Taking into consideration that the group’s DNA emphasises on location, accessibility, innovative designs, security, efficient use of space and developing sustainable townships, this augurs well for its developments that are on the drawing board for 2014.

New project highlights
In the Klang Valley, the group’s new project line-up include Tropicana Gardens in Kota Damansara and Tropicana Metropark in Subang. In addition to these projects are W Kuala Lumpur Hotel and The Residences in KL as well as Tropicana Heights in Kajang, Selangor, where phase one of its parkview homes is expected to be launched soon. Besides its RM8.3bil Tropicana Danga Bay project which spans 37 acres of freehold land, the group will roll out two other projects in the southern region, namely Tropicana City Centre and Tropicana Danga Cove.

Sited within Zone A of the Johor Bahru City Centre in Iskandar Malaysia, Tropicana City Centre is a RM5bil mixed development that includes lifestyle properties such as SoHo (Small office Home office), an office tower, hotel and retail or food and beverage outlets.

Targeted for launch in October 2014, its first phase, the 7.95-acre Veridian Residences, will comprise four towers of luxurious serviced residences. Tower A1’s unit size will range from 709sq ft for a 1+1 bedroom to 1,946sq ft for a four-bedroom penthouse. Jointly developed with Iskandar Waterfront Sdn Bhd, the 227-acre Tropicana Danga Cove in Bandar Baru Kota Puteri will be another vibrant mixed development. Its first phase, Oasis, will be a 38-acre freehold commercial business hub comprising 350 shop offices with a gross development value (GDV) of RM600mil.

Located between Pasir Gudang Highway and the new Coastal Highway, Oasis is accessible via the Eastern Dispersal Link highway which connects the Johor Bahru Customs, Immigration and Quarantine Complex to the Pasir Gudang port. Meanwhile, the group’s PWC project and its Tropicana 218 Macalister development in Penang are expected to stir interest in the northern region. The group is also making inroads into Sabah where it plans to develop a luxurious golf fronted condominium project called Tropicana Landmark.

Outstanding 2013 performance
According to Tropicana group managing director Datuk Dickson Tan, the group achieved record new sales of RM2.17bil for the year 2013. With this sales achievement, the group will fine-tune its FY14 launches and sales strategy. Tropicana also managed to successfully raise RM168mil through its land disposal activities besides notching an additional RM337mil gross proceeds from land sales.

Its group pre-tax profit rose 12% to RM178.473mil while its group revenue registered a whopping 160% increase to RM1,030.38mil as at Sept 30, 2013. Currently, 90% of Tropicana’s revenue is generated by its dealings in property development, resort operations, property investment and land trading. The group, with about 2,200 acres of landbank, has a potential future GDV of RM80bil. It is the latest property developer to achieve market capitalisation in excess of RM1.2bil.

Corporate social responsibility
As part of its corporate social responsibility, the group, through its Tropicana Foundation, contributed a total of RM3.5mil to various organisations and charities in 2013.

They include Ti-Ratana Welfare Society, Persatuan Rumah KIDS, Rumah RACTAR, Federation of Chinese Associations Malaysia, Tzu Chi Foundation Malaysia, Football Association of Johor, Hospis Malaysia, Tan Sri Muhyiddin Charity Golf Foundation, World Chinese Economic Forum, Foon Yew Associated Chinese Schools and SRJK (C) Yeong Chang. The group also donated to the historical Penang Starwalk 2013 to reach out to the community and promote a healthy lifestyle.