The Malay Mail, 4 July 2014 - Tropicana selling assets to raise cash
The Malay Mail, 4 July 2014
KUALA LUMPUR - In the recent Tropicana Corp Bhd's Annual General Meeting, the group identified RM2 billion worth of assets comprising land, property investments and non-core assets to be sold over the next two years to raise cash and pare down its debts. The assets are primarily located in the Klang Valley and Iskandar, Johor.
Group chief operating officer Datuk Yau Kok Seng said, "We have drawn up our list and it includes our smaller parcels of land. These deals give us very good value and bring down our gearing."
"So far, land sales in the Canal City project in Selangor to Eco World Development Bhd, as well as a recent sale to Hong Kong-listed Agile Property Holdings Ltd have collectively raked in RM1.05 billion," he said.
Yau said the masterplan for the joint venture with Agile was being finalised and that the gross development value (GDV) of the project would be to raise cash over a billion ringgit.
"The partnership will enhance Tropicana's brand presence across China, Hong Kong and Macau as we want to continue to get good support from that region as well as Indonesia, Singapore and Taiwan," he added.
Tropicana has a landbank of 1,954 acres in Kuala Lumpur, Iskandar Malaysia and Penang, which would yield a potential GDV of RM70.5 billion.
With RM1.3 billion worth of property sales in the year to date, the group is targeting to achieve new sales of more than RM2 billion this year from its planned launches worth RM3 billion for the financial year ending Dec 31.
The targeted sales of RM2 billion are on top of the RM2 billion worth of assets to be divested.
In view of the slower property market, Yau said Tropicana has to be extremely innovative to sustain its pace of growth..