Oriental Daily - 25 April 2019 - Tropicana Corporation Bhd joint cooperate 4 commerce project and development value RM 4.7 billion
25 April 2019
Kuala Lumpur, 24 April 2019 – Tropicana Corp. Bhd. (TROP, 5401, main market, property) proposed to co-joint and develop four pieces of land with an estimated total gross development value (GDV) of RM 4.78bil.
Tropicana Corp. Bhd. and the four landowners that include Pantai Kok Resort Development Sdn. Bhd., Sinaran Ramah Sdn. Bhd., Suci Padu Sdn. Bhd. and Ibarat Indah Sdn. Bhd. entered into joint-development agreements (JDAs) for proposed collaboration.
The landowners will be entitled to 12% of the respective development’s actual GDV, which is estimated RM 813.5mil.
Nevertheless, the group required paying a sum equivalent to 1% of the minimum GDV entitlement that is RM 8.13mil for each landowner for each project.
The management revealed that collaborations with the first two developers would provide an opportunity for Tropicana to expand its presence in Langkawi.
Meanwhile, the collaboration with the latter developer enables Tropicana to develop more than 1,000 acres Pekan Nenas land in Pontian, Johor.
Tropicana will complete the projects via internal financing and bank loan as well.