An artist’s impression of Avisa Residences, one of Tropicana's upcoming developments.

PETALING JAYA: Tropicana Corporation Bhd (Tropicana), through its subsidiary Tropicana Indah Sdn Bhd has signed a sale and purchase agreement with IOI Mall Damansara Sdn Bhd (IOI MD), a wholly-owned subsidiary of IOI Properties Group Berhad (IOIPG), for the sale of Tropicana Gardens Mall for a total consideration of RM680mil. 

The latest divestments, including the disposal of two other investment assets, W KL Hotel and Courtyard by Marriott Penang to IOIPG, total up to more than RM1.1bil in transaction value. With these divestments, Tropicana’s pro forma gearing ratio is expected to decrease from 0.54 times (as of 31 December 2023) to 0.39 times. The group expects that its gearing will continue to decline and its financial position will strengthen. 

The group said that the sale also marks Tropicana's efforts to maintain financial discipline and enhance financial stability. With its substantial strategic land banks across Klang Valley, Johor, and Genting Highlands, it said that it has the flexibility to reposition its asset and debt portfolios effectively. 

The group also reported a revenue of RM291.3mil which was RM34.5mil or 13.5% higher for the financial period ended 31 March 2024 when compared to the corresponding quarter in the preceding year, and an increased in profit before tax (PBT) to RM22.3mil in Q1 2024, compared to a PBT of RM0.8 mil in Q1 2023. 

It expects its financial position to strengthen with the upcoming handover of six vacant possessions this year from Tropicana Aman, Tropicana Miyu, Tropicana Metropark and Tropicana Uplands, and continue its leading position in the market with the upcoming rollout of developments worth an estimated RM4bil in GDV across Malaysia.  

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