PETALING JAYA: Tropicana Corp Bhd
is acquiring two land parcels in Langkawi for a combined RM195.88mil, as the property developer expands its footprint in areas with tourism-driven growth potential.
In separate filings to Bursa Malaysia, the group said its wholly owned subsidiary, Tropicana Scenic Development Sdn Bhd, had entered into sale and purchase agreements on Dec 29, 2025, for the acquisitions, which are expected to be completed by the fourth quarter of 2026.
The larger transaction involves the purchase of 14 plots of freehold and leasehold land in Bandar Padang Lalang, Langkawi, measuring about 21.03 acres, for RM151.06mil.
The land, currently categorised for agricultural and building use, is located within a key settlement and service hub identified by the Langkawi Development Authority for agro-tourism and commercial development initiatives.
The area is supported by surrounding amenities and ongoing developments, and is situated close to several tourist attractions, including Tanjung Rhu Beach and the Kilim Geoforest Park, a UNESCO Global Geopark known for its mangrove ecosystems and eco-tourism offerings.
Tropicana said the site is also expected to benefit from infrastructure improvements and government-led projects in the vicinity.
Separately, Tropicana is acquiring a 3.12-acre leasehold parcel in Padang Matsirat for RM44.82mil. The land, which carries a 99-year lease expiring in 2116, is designated for tourism and commercial use, including hotels, serviced apartments and related developments.
Located near Langkawi International Airport, the site offers accessibility and connectivity advantages, and is within close proximity to local attractions such as Mahsuri’s Tomb and Atma Alam Batik Village. Popular beach destinations including Pantai Cenang and Pantai Tengah are also within a short driving distance.
Tropicana said both acquisitions were negotiated on a willing-buyer willing-seller basis, taking into account independent market valuations and the development prospects of the land. The purchase considerations will be satisfied entirely in cash, funded through a combination of bank borrowings and internally generated funds.
The group said the acquisitions are in line with its strategy to expand its landbank in locations with strong long-term growth potential. The Bandar Padang Lalang land is seen as suitable for agro-tourism and potentially sustainable residential or commercial-related developments, supported by Langkawi’s transformation under its Local Plan 2030 into a modern tourism destination.
Meanwhile, the Padang Matsirat parcel is expected to offer opportunities for commercial or mixed-use developments, given its proximity to transport infrastructure and established amenities.
From a financial perspective, the acquisitions are not expected to have an immediate material impact on Tropicana’s earnings for the financial year, although they may result in a slight increase in gearing depending on the final funding mix. Over the longer term, however, the group expects the development of these land parcels to contribute positively to earnings and enhance its development pipeline.
The group noted that the acquisitions are not subject to shareholder approval and do not involve the issuance of new shares. As with other property developments, the projects will be exposed to risks such as market conditions, financing availability and potential delays, although these are consistent with Tropicana’s existing business activities.
Overall, Tropicana views the acquisitions as a strategic move to strengthen its presence in Langkawi, leveraging the island’s growing appeal as a tourism and investment destination.
