Tropicana sells Bukit Bintang land for RM55mil

KUALA LUMPUR: Advent Nexus Sdn Bhd, a unit of Tropicana Corp Bhd, is disposing of its freehold land located in Bukit Bintang, Kuala Lumpur, to real estate company Pinnacle Supreme Sdn Bhd for RM55mil cash.

In a filing with the local stock exchange, Tropicana said the 11,904 sq ft land along Jalan Pudu, comprised a 4½-year-old 10-storey hotel known as Sky Express Hotel.

The property developer intended to realise gain via the property sale and raise funds for working capital and/or reduce its bank borriwngs.

The property had a net book value of RM45.09mil as at Dec 31, 2014. Tropicana had originally invested RM54mil in it in June 2012.

Tropicana said the sale consideration was arrived on a willing buyer and willing seller basis after taking into account the original cost of investment and the market value of the said property.

Under the terms, Pinnacle would have to come up with 10% or RM5.5mil once the SPA was completed.

The remaining RM49.5mil would be paid within two months from the completion period, with an extension of one month subject to late payment interest of 8% per annum on the outstanding sum calculated on a daily basis.

Other conditions include Advent Nexus having obtained a consent from Tenaga Nasional Bhd for the transfer of the property to Pinnacle and Pinnacle to get approval from the Economic Planning Unit with regards to the property acquisition. All are to be concluded within three months.

The disposal is slated for completion in the second quarter of 2016 and will not have impact on Tropicana’s earnings per share and net assets per share for the financial year ending Dec 31, 2016.

Tropicana shares fell 1 sen to close at 97.5 sen on Tuesday.