KUALA LUMPUR (Feb 11): Tropicana Corp Bhd on Friday (Feb 11) said it has entered into an agreement with PowerChina International Group Ltd to develop a 308-acre integrated entertainment hub dubbed Tropicana Paradise in Genting Highlands.
According to the group’s announcement to Bursa Malaysia, the project is part of the 596-acre mega master planned development in Genting Highlands called Tropicana WindCity.
The development will feature among others, a total of 1.5 million sq ft of retail space, serviced apartments, branded residences, as well as 4- and 5-star international brand hotels.
“Foremost, I want to extend my sincere appreciation to PowerChina for their trust, confidence, and support of Tropicana. Our Tropicana team has worked for months to line up this deal and this collaboration signifies our united commitment towards building a sustainable township,” Tropicana’s CEO Lee Han Ming said in a statement on the strategic partnership .
“PowerChina is a global powerhouse and a Fortune 500 company with a strong presence in the construction and engineering industry. With their expertise and construction financing, we are confident PowerChina will bring Tropicana Paradise to the next level,” he said.
The project will feature sustainable transportation and infrastructure such as a comprehensive cable car system, electric tram system, and elevated pedestrian walkways which are disabled-friendly, as well as bicycle and wheels tracks.
As it will be developed in Genting Highlands, a nature sensitive location, Tropicana and PowerChina will strive to preserve the area’s natural landscape, the group said. There will be strong emphasis on sustainable energy such as solar energy, the statement added.
The property developer said the agreement was signed between its wholly-owned subsidiaries, Tropicana Inspirasi Indah Sdn Bhd and Tropicana Inspirasi Impian Sdn Bhd, and PowerChina’s wholly-owned subsidiary Sinohydro Corp (M) Sdn Bhd.
PowerChina is a global power construction company founded in 2011 and has been involved in more than US$100 billion construction projects globally, while being ranked 107th on the Fortune 500 Companies list in 2021.
Separately in a bourse filing, Tropicana said the agreement will award the construction project based on the most competitive terms acceptable to Tropicana.
In the event PowerChina is awarded the construction works for the entertainment hub and three blocks of serviced apartments, PowerChina shall make its utmost effort to provide maximum possible financing margin for the construction costs of the project, and obtain final consent and approval from relevant/applicable government authorities and financing institutions in China, the filing added.
The property developer also said that it will provide a repayment guarantee if it accepts PowerChina’s financing offer.
PowerChina’s executive vice president Zhou Jiayi said the company is proud to partner with Tropicana and believes that Tropicana’s WindCity master development will attract a lot of positive interest from both locals and foreign investors.
“We are excited to be a part of this wholesome and exciting development in the highlands with a cool climate. We are confident of our engineering and construction expertise (and) together with Tropicana’s master plan, we will certainly build a prominent entertainment and leisure hub of tomorrow at Tropicana Paradise,” Zhou said.
At Friday’s market close, Tropicana’s shares were unchanged at RM1.04, giving the property developer a market capitalisation of RM1.58 billion, based on 1.51 billion outstanding shares.
Based on Bloomberg data, Tropicana is trading at 0.32 times its price-to-book value with a net tangible asset value of RM3.21 per share.