New Straits Times, 31 May 2014 - Tropicana to step up growth via partnership
New Straits Times, 31 May 2014
TRANSFORMATION PLAN: Firm in talks with international developers, investors TROPICANA Corp Bhd plans to accelerate its growth via strategic partnerships, said its group chief executive officer Datuk Yau Kok Seng.
He said the company is in talks with several international property developers and investors. “This is part of our plan to transform the company into a bigger entity. We rebranded the company last year and now want to grow the company, albeit cautiously,” he said after launching a sales gallery in Singapore recently.
Tropicana’s transformation blueprint includes unlocking value through development and land sales, de-gearing and strategic partnerships, which are potential significant re-rating catalysts. To sustain its strong sales and profitability growth, the company has added several key management personnel with vast experience in property development and corporate strategy.
In the last three years, Tropicana’s new sales have increased to RM2.17 billion from RM429 million in 2011. Its net profit has risen to RM378 million from RM77 million.
On the Singapore sales gallery, Yau said it is aimed at generating awareness on the company’s projects in key growth regions, namely Penang, the Klang Valley and Johor.
The two-level sales gallery is located on the ground floor of TripleOne Somerset, near Orchard Road. Yau said the sales gallery will help make Tropicana’s projects more accessible to potential buyers in Singapore, Hong Kong, Indonesia, China and Australia. “About 40 per cent of the buyers of our integrated projects are Malaysians and expatriates living in Singapore, and Singaporeans. Singapore, for us, is an ideal location to promote and sell the Tropicana collection.
“We will use the sales gallery as a platform to showcase all our developments, especially in Penang and Johor,” he said.
Tropicana has four projects in Johor, namely Tropicana Danga Bay, Tropicana Danga Cove, Tropicana Senibong and a development in Mukim Pulai.
In Penang, it has developed Tropicana 218 Macalister, which comprises 208 hotel rooms, 211 commercial suites and 88 units of serviced apartments.