Tropicana Corp said on Friday the property project would be undertaken on the 103.82ha of freehold land which it was buying from Lee Pineapple Company (Pte) Ltd for RM366.55mil.
Tropicana Corp’s unit Tropicana Desa Mentari Sdn Bhd had entered into a conditional sale and purchase agreement with Lee Pineapple to buy the land, which consisted of 18 pieces of freehold land.
It said the purchase consideration was based on several factors including its location in an area “ripe for mixed development” as it was at the north of Iskandar Malaysia’s Flagship B: Nusajaya Development.
It added there were established residential developments such as SP Setia Eco Gardens, Bukit Indah, Horizon Hill, Leisure Farm and Ledang Heights.
The other factors were the current market value of land within the vicinity of the area and the potential gross development value of about RM6.4bil based on the initial planning of the proposed development.
Tropicana Corp said the proposed land acquisition and the development cost of the land will be funded through Tropicana Group’s internally generated funds and/or bank borrowings.
“The exact mix of the financing mode will be determined by the management of Tropicana Group at a later stage taking into consideration the gearing level of Tropicana Group,” it said.
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