Tropicana sells Dijaya Plaza to Kenanga IB for RM140mil

Sealing the deal...(from left) K&N Kenanga Holdings Bhd senior executive director Datuk Bruce Kho, K&N Kenanga group managing director Datuk Chay Wai Leong, K&N Kenanga chairman Tengku Datuk Paduka Noor Zakiah Tengku Ismail, Tropicana Corp group CEO Datuk Yau Kok Seng and Tropicana Corp deputy group CEO Datuk Dickson Tan.

KUALA LUMPUR: Tropicana Corp Bhd has sold the 19-storey Dijaya Plaza at Jalan Tun Razak, Kuala Lumpur, to Kenanga Investment Bank Bhd for RM140mil in cash.

The property and resort developer told Bursa Malaysia that its unit Tropicana Plaza Sdn Bhd sold the office building and the 3,674 sq m freehold land where it is sited to K & N Kenanga Holdings Bhd's investment banking arm.

K&N Kenanga said in a separate filing that the Dijaya Plaza building would be used as the corporate office of its group of companies. The master lease of its main corporate office will expire in the second quarter of 2017.

The property, in which Tropicana originally invested RM110.62mil, had a net book value of RM130mil as at Dec 31, 2014.

Tropicana said it expected to gain RM8.9mil (net of tax payable) from the disposal.

The net proceeds of about RM51.6mil would be used for working capital and/or repayment of bank borrowings of the Tropicana group, the company said.

The disposal is expected to be completed in the second quarter of this year.

Tropicana shares shed 1 sen to close at 96 sen on Thursday while K&N Kenanga fell half a sen to 46.5 sen.