The Sun, 20 March 2014 - Tropicana to sell land to Eco World for RM471m

The Sun, 20 March 2014

PETALING JAYA: Tropicana Corp Bhd plans to sell 308.72 acres of land in Tropicana Aman to Eco World Development Group Bhd for RM470.67 million or RM35 per square feet.

In a statement yesterday, Tropicana said the transaction is expected to generate a net gain of about RM170 million for the group and translate into incremental net earnings per share of 12 sen for the current financial year ending Dec 31, 2014.

It said the sale and purchase agreement is targeted for completion by the second half of 2014.

The group currently possesses 1,960 acres of strategic landbank in Greater KL, Iskandar Malaysia and Penang island, with an estimated future gross development value (GDV) of RM75 billion.

"As master developer of Tropicana Aman, this transaction is significant in enabling us to bring in a developer who can complement our development approach in creating vibrant and unique self-contained communities," said its group executive vice chairman Tan Sri Danny Tan Chee Sing.

"This sale is also in line with our transformation strategy to unlock the value of our sizeable landbank, and monetise our assets to strengthen our balance sheet. On top of enhancing earnings, the cash proceeds from this disposal will further strengthen our delivery platform and better position us for sustainable growth over the medium to long term," he added.

Tropicana Aman is located within the vibrant South Klang corridor and fringes established townships of Putra Heights, Kota Kemuning and also the upcoming Bandar Rimbayu, which caters to the middle and upper class income earners.

Tropicana Aman is slated to be launched in the second half of 2014. The scheduled launches of Tropicana Aman for 2014 will comprise landed properties with an estimated GDV of RM770 million.