- The disposal was arrived at a willing buyer-willing seller basis and will generate surplus cash of approximately RM80.8 million for Tropicana.
EdgeProp January 26, 2024
PETALING JAYA (Jan 26): Tropicana Macalister Avenue (Penang) Sdn Bhd, a wholly-owned subsidiary of Tropicana Corp Bhd today signed a sale and purchase agreement with IOI PFCC Hotel Sdn Bhd, an indirect subsidiary of IOI Properties Group Bhd for the sale of Courtyard by Marriott Penang for a total cash consideration of RM165 million.
According to a media release by Tropicana, the disposal was arrived at a willing buyer-willing seller basis and will generate surplus cash of approximately RM80.8 million for Tropicana.
It added that 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,” stated the developer.
“Over the past few months, the group reported a string of positive news, from its successful 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,” said Tropicana’s management.
“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 customercentric engagements,” it added.
Courtyard by Marriott Penang opened its doors in 2020 and is the first property in Malaysia to offer 199 hotel rooms and suites together with hotel facilities. Located at the heart of Georgetown “this modern hotel enjoys commanding views and high occupancy rates throughout the year”, stated Tropicana.
“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,” it added.