PETALING JAYA: Tropicana Corp Bhd
’s wholly-owned subsidiary, Tropicana Residences Sdn Bhd (TRSB), yesterday signed a sale and purchase agreement (SPA) with IOI PFCC Hotel Sdn Bhd (IOI PFCC) and Flora Development Sdn Bhd for the disposal of the W Kuala Lumpur hotel and its assets (W KL) for RM270mil.
It told Bursa Malaysia in a stock exchange filing that the disposal consideration was arrived at a willing buyer-willing seller basis, after taking into consideration the expected “net proforma gain on disposal of (about) RM7.41mil”.
“The disposal would give rise to RM270mil in proceeds, and with such proceeds, after deducting incidental expenses related to the proposed disposal, to be utilised by Tropicana to, among others, fully repay W KL’s existing bank borrowings and hence improve Tropicana Group’s gearing level,” it said.
The company said the proposed disposal is not expected to have an immediate material impact on the net assets and gearing of Tropicana for the financial year ending Dec 31, 2023 as the proposed disposal is expected to be completed in the first quarter of 2024.
However, the disposal is expected to enhance the net asset of Tropicana Group in the future.
This is in view that the proceeds would be utilised to fully repay the existing bank borrowings of W KL, as well as partially repay existing bank borrowings of Tropicana Group, which would improve the gearing of Tropicana Group.
W KL comprises 25 storeys, 150 hotel rooms together with hotel facilities and 346 car park bays, located adjacent to the junction of Jalan Ampang and Jalan P Ramlee, near the PETRONAS Twin Towers and Suria KLCC in Kuala Lumpur. — Bernama
