Tropicana sells RM470.6mil land to Eco World

KUALA LUMPUR: Tropicana Corporation Bhd is expected to bag a net gain of RM170mil from its RM470.67mil land sale to Eco World Development Group Bhd.

In a statement on Wednesday, Tropicana said its 308.72 acre land sale in South Klang is expected to translate into incremental net earnings per share of 12 sen for its year ending Dec 31, 2014.

The land is part of the 1,172 acre Tropicana Aman which the group acquired in April 2013.

“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 gross development value of RM770mil,” it said.

Group executive Danny Tan Chee Sing said the sale is in line with its transformation strategy to unlock the value of its sizeable landbank, and monetise its 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 said.

For the financial year ended Dec 31, 2014, Tropicana posted a 134% increase in revenue to RM1.47bil.

Group pretax rose 123.9% to RM503.6mil, while net profit attributable to shareholders gained 112% to RM362.3mil.