Tropicana Sells Courtyard By Marriott Penang For RM165mil Netting Surplus Cash of RM80.8mil
Petaling Jaya – Tropicana Macalister Avenue (Penang) Sdn Bhd (“Tropicana Macalister”), a wholly-owned subsidiary of Tropicana Corporation Berhad (“Tropicana” or “The Group”) today signed a sale and purchase agreement (“SPA”) with IOI PFCC Hotel Sdn Bhd, an indirect subsidiary of IOI Properties Group Berhad (“IOIPG”) for the sale of Courtyard by Marriott Penang (“Courtyard”) for a total cash consideration of RM165 million.
The disposal was arrived at a willing buyer-willing seller basis and will generate surplus cash of approximately RM80.8 million for the Group which will be utilised to pare down its existing financing facilities. The disposal is aligned with the Group’s ongoing initiatives to monetise its landbanks and investment properties, reduce its net gearing and improve its financial position. The Group will continue to deliver sustainable earnings backed by RM2.3 billion unbilled sales, ongoing property sales campaigns as well as improved performance from the Group’s property sales netting RM1.4 billion in FY2023.
“Over the past few months, the Group reported a string of positive news, from itssuccessful sukuk redemption, higher revenue jump to multiple award triumphs. We are confident that the Group will continue to strengthen its market presence and contribute to its future earnings supported by high unbilled sales of RM2.3 billion and strong take-up for ongoing projects. Our mission is to transform Tropicana into a future-ready property group with a strong purpose of sustainable growth, centred around our development DNAs and ESG commitments. We have strategic divestment plans that we are confident of achieving and will continue to roll out effective sales campaigns to drive growth, especially emphasising our digital and online initiatives and customer-centric engagements,” the management emphasised.
Opened its doors in 2020, Courtyard is the first in Malaysia, offering 199 hotel rooms and suites together with hotel facilities. Located at the heart of Georgetown Penang, this modern hotel enjoys commanding views and high occupancy rates throughout the year.
The Group remains optimistic and is confident that there will be continuous demand for properties in prime locations in Tropicana’s established, matured, and developing townships. Tropicana’s ongoing or new developments recorded excellent take-up such as:
1. 95% take-up | SouthPlace Residences, Tropicana Metropark @ Subang Jaya
2. 80% take-up | Hana Residences, Tropicana Aman @ Kota Kemuning
3. 100% take-up | Umara Shop Offices, Tropicana Aman @ Kota Kemuning
4. 87% take-up | Edelweiss SOFO & Serviced Residences, Tropicana Gardens @ Tropicana Indah 5. 90% take-up | Tower A TwinPines Serviced Suites, Tropicana Grandhill, Genting Highlands @ Pahang
6. 90% take-up | Assana Serviced Suites, Tropicana Cenang @ Langkawi Entering into 2024,
Tropicana will continue to gain traction in the market and will be unveiling these signature developments worth an estimated GDV of over RM4 billion:
1. Shoppes, Tropicana Aman @ Kota Kemuning
2. Terrace Homes, Tropicana Alam @ Puncak Alam
3. Bora Tower B Serviced Residences & Retail Shops, Tropicana Danga Bay @ Johor
4. Serviced Residences & Retail Shops, Lido Waterfront @ Johor
5. Terrace Homes, Tropicana Uplands @ Johor
6. Landed Homes, Tropicana Paradise @ Tropicana WindCity, Genting Highlands
7. Serviced Residences & Retail Shops, Tropicana Avalon @ Tropicana WindCity, Genting Highlands
8. Serviced Residences, Tropicana Cenang @ Langkawi
Overall, Tropicana’s total landbank spans 1,842 acres, with a total potential GDV of approximately RM120 billion, placing the Group in a good position to unlock the value of its strategic landbank and deliver sustainable performance in the next few years.
