KUALA LUMPUR (Feb 29): Property developer Tropicana Corp Bhd is acquiring a piece of leasehold land in Kota Damansara for RM224 million to be developed into a residential area comprising four to five tower blocks of serviced apartments, with an estimated gross development value of about RM2.8 billion.
The land, measuring 7.79 acres, is situated adjacent to Tropicana’s mixed development, Tropicana Gardens, which is at its final phase of development. As such, the land is expected to have good development potential moving forward, the group said in a bourse filing.
"The proposed acquisition will enable Tropicana Group to continue to capitalise on the success of Tropicana Gardens, leveraging on its vast amenities and realising the benefits of its maturity. The proposed acquisition represents an opportunity for Tropicana Group to replenish its landbank in prime location in Klang Valley," Tropicana.
Its wholly-owned Tropicana Kajang Hill Sdn Bhd had inked a sale and purchase agreement with Perbadanan Kemajuan Negeri Selangor (PKNS) to acquire the land, which Tropicana plans to develop in multiple phases.
It expects there to be about 3,200 serviced apartments under the project, complete with condominium facilities and a small retail component.
"The proposed development on the land is expected to enhance Tropicana Group’s future earnings and growth prospects, while also strengthening its project pipeline to drive sustainable growth," Tropicana added.
On Tuesday, Tropicana reported a net loss of RM158.92 million for its fourth quarter ended Dec 31, 2023 (4QFY2023), down 49.45% from the RM314.37 million net loss it incurred in 4QFY2022, as revenue more than doubled to RM390.46 million from RM186.19 million on higher progress billings across its key projects in the Klang Valley, southern and northern regions.
For its full FY2023, Tropicana narrowed its net loss to RM174.19 million, down 60% from RM435.59 million it recorded in FY2022, as revenue jumped 60.68% to RM1.51 billion from RM942.56 million on higher progress billings, while the group completed its land sales in Kota Kemuning, Kajang and Genting Highlands for a total of RM205.6 million in 3QFY2023.
Tropicana shares closed one sen or 0.8% higher at RM1.26 on Tuesday, giving the group a market capitalisation of RM2.9 billion.