Tropicana degears, but more needs to be done to reduce debt (Update)

The Tropicana City Mall and Tropicana City Office Tower were sold for RM565mil.

PETALING JAYA: While Tropicana Corp Bhd has just sold two key assets, Tropicana City Mall and Tropicana City Office Tower for RM540mil, the group’s gearing remains high and more needs to be done to reduce its debt levels, analysts opine.

Last week, Tropicana completed the sale of the said assets to CapitaMalls Malaysia Trust (CMMT), and out of the sales proceeds, some RM460mil went to repaying Tropicana’s debts, reducing its total borrowings to RM1.95bil from RM2.41bil previously. This will reduce its gearing level to 0.52 times from 0.72 times previously.