The Star - 25 April 2019 - Tropicana ink deals to develop four plots of land
25 April 2019
Tropicana Corp Bhd has entered into four joint-development agreements (JDAs) with Pantai Kok Resort Development Sdn Bhd, Sinaran Ramah Sdn Bhd, Suci Padu Sdn Bhd and Ibarat Indah Sdn Bhd for proposed collaborations.
The collaborations are to develop Pantai Kok land and Pulau Rebak Kechik land in Langkawi, Kedah, and Pekan Nenas Land 1 and 2 in Pontian, Johor
The landowners of the four development plots of land have agreed to appoint and grant Tropicana or its nominated subsidiary the exclusive right to undertake and carry out the development of the collaboration plots of land with common facilities, infrastructure and amenities.
Tropicana will undertake and carry out the developments on the land at its own cost and expenses. The landowners will be entitled to 12% of the actual gross development value (GDV) of the developments, subject to them receiving a minimum entitlement as set out in the respective JDAs.
A sum equivalent to 1% of the minimum GDV entitlement will be paid by the developer to the landowners upon execution of the JDAs as an upfront initial sum.
The initial sum for Pantai Kok, Sinaran Ramah, Suci Padu and Ibarat Indah are RM3.62mil, RM370,000, RM3.99mil and RM0.16mil, respectively.
The proposed Sinaran Ramah and Pantai Kok collaborations will provide an opportunity for Tropicana to expand its presence in Langkawi.