Nanyang Siang Pau - 10 August 2014 - Tropicana MBI PNSB adjust the land sale and purchase agreement
10 August 2014
Tropicana MBI PNSB adjust the land sale and purchase agreement
Kuala Lumpur, 9 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 Bhd. (PNSB) for amending and incorporating of additional terms and conditions in this land sales and purchase agreement.
Tropicana Corp. Bhd.’s subsidiary Sapphire Index Sdn. Bhd. entered into a sales and purchase agreement with MBI and PNSB in April.
According to the agreement with both of the Selangor’s organization, the group used RM1.3bil for the acquisition of 1,172 acres of land in Tropicana Aman (formerly known as Canal City) within vicinity of Kota Kemuning,
In a filing with Bursa Malaysia, subsequent to the execution of the SPA, there was an internal restructuring whereby MBI will be registered as landlord, PNSB will be appointed as an agent for MBI and the project manager to manage MBI’s interest pursuant to the SPA.
According to the supplementary agreement, Sapphire Index agreed to adjust the acquisition price of 1,172 acres of land to RM18.02 per sq. ft. to the net area of developable land.
As for the land that Tropicana Corp. Bhd. sold to EcoWorld Development Sdn. Bhd. (ECOWLD, 8206, main market, property), payment for part of the purchase price will be accelerated with adjusted amount of RM173mil from RM85mil.
Earlier, the group sold 308.72 acres of land to EcoWorld. Meanwhile, Sapphire Index will discuss with Bandar Rimbayu Sdn. Bhd. regarding the cost-sharing plan for the construction of three main roads, including to bear 40% of the cost.