KUALA LUMPUR: Tropicana Corporation Bhd's wholly-owned 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.
"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.
Following the disposal, Tropicana is expected to have a surplus cash of about RM80.8 million.
The company remains optimistic that there will be continuous demand for properties in prime locations in its established, matured and developing townships.
Tropicana said it 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 about RM120 billion.
This year, the developer is set to unveil signature developments worth an estimated GDV of over RM4 billion.
This comprises projects like Shoppes, Tropicana Aman in Kota Kemuning; Terrace Homes, Tropicana Alam in Puncak Alam; as well as Bora Tower B serviced residences and retail shops.
