Tropicana Corp unit to gain RM55.5mil from sale of Johor land

Tropicana Gardens at Kota Damandara

KUALA LUMPUR: Tropicana Corp Bhd’s indirect unit Tropicana Desa Mentari Sdn Bhd (TDM) is disposing freehold land with 251.59 acres of developable area in Gelang Patah, Johor, for RM569.87mil.

In a filing with Bursa Malaysia, the property developer said TDM signed an agreement to sell the land, measuring 131.96ha in gross area, to Tiarn Oversea Group Sdn Bhd.

As at Dec 31, 2015, the land has a net book value of RM413.69mil. TDM originally bought the land for RM366.55mil in September 2013.

Tropicana said the expected gain from the disposal was about RM55.5mil (net of tax payable).

The net proceeds of about RM218.4mil after repayment of bank borrowings, taxes and any related expenses arising from the disposal would be used for the working capital and/or repayment of the group’s bank borrowings, it said.

“The disposal is in line with Tropicana Group’s de-gearing exercise to strengthen its financial footing,” it said.

Tropicana said the disposal was expected to be completed in the second half of 2022.