Tropicana unit to dispose of Courtyard by Marriott Penang for RM165mil

Courtyard by Marriott Penang

KUALA LUMPUR: Tropicana Corporation Bhd’s (Tropicana) wholly-owned subsidiary, Tropicana Macalister Avenue (Penang) Sdn Bhd is disposing of Courtyard by Marriott Penang for RM165 million to IOI PFCC Hotel Sdn Bhd, an indirect subsidiary of IOI Properties Group Bhd.

Tropicana said the parties had inked the sale and purchase agreement today, adding that the disposal will generate surplus cash of approximately RM80.8 million for the group, which will be utilised to pare down its existing financing facilities.

"The disposal is aligned with the group’s ongoing initiatives to monetise its landbanks and investment properties, reduce its net gearing and improve its financial position,” it said in a statement.

Tropicana said the group will continue to deliver sustainable earnings, backed by its RM2.3 billion unbilled sales, ongoing property sales campaigns as well as improved performance from its property sales.

Its total landbank spans 745.43 hectares, with a total potential gross development value (GDV) of approximately RM120 billion.

This year, the property developer is set to unveil signature developments worth an estimated GDV of over RM4 billion, comprising projects like Shoppes, Tropicana Aman in Kota Kemuning; Terrace Homes, Tropicana Alam in Puncak Alam; as well as Bora Tower B Serviced Residences & Retail Shops, among others.

It also will launch Landed Homes, Tropicana Paradise @ Tropicana WindCity and Serviced Residences & Retail Shops, Tropicana Avalon @ Tropicana WindCity in Genting Highlands as well as Serviced Residences, Tropicana Cenang in Langkawi. - Bernama