The Malaysian Reserve, 9 May 2014 - Tropicana expects gain of RM145m from RM448m land sale

The Malaysian Reserve, 9 May 2014

TROPICANA Corp Bhd expects to gain about RM145 million from the sale of a 1.3ha land in Bukit Bintang to Offshore Triangle Sdn Bhd (OTSB) for RM448.4 million.

The property development company said it will use the proceeds as working capital or to cut debt as part of its de-gearing exercise.

"The transaction paves the way for a strategic tie-up at a project level with a highly reputable partner in Agile Property Holdings Ltd (AFHL).

"The strategic partnership with APHI will elevate Tropicana's brand presence across regional markets and enable us to leverage on APHUs marketing network in those markets,' said Tropicana's group executive vice chairman Tan Sri Danny Tan Chee Sing in a statement yesterday.

OTSB is 70%-owned by APHL, a Hong Kong-listed property company, with Tropicana owning the other 30%.

The land sale is expected to be completed by the first-half of 2015 and the land is targeted for a mixed development, which is currently in its initial planning stage.

Tropicana had undertaken a few land transactions in recent months that raised a gross proceed of about RM1.1 billion.

In June 2013, Tropicana sold some land in Tropicana Golf and Country Resort to a unit of Mulpha Land Bhd for RM116 million, netting RM87 million.

In March this year, Tropicana reported a RM170 million gain from a RM470 million Selangor land sale to Eco World Development Bhd.

Tropicana has about 1,954 acres of undeveloped landbank in greater Kuala Lumpur, Iskandar Malaysia and Penang with a potential gross development value of RM70 billion.

Meanwhile, the company announced that it had acquired 100% of Tropicana Holding (Hong Kong) Ltd (THHKL) for a total cash consideration of HK$1 (42 sen).

Following the acquisition, THHKL has become a wholly owned subsidiary of the company.

Tropicana ended yesterday's trading unchanged to close at RM1.43 with 1.46 million shares traded..