KUALA LUMPUR (March 25): Tropicana Corp Bhd (KL:TROP) said it has fully redeemed its RM89.43 million Tranche 1 perpetual sukuk.
Originally issued in September 2019, the outstanding Tranche 1 perpetual sukuk was secured to fund key projects across Tropicana’s strategic townships in Malaysia. This redemption forms part of several initiatives to reduce overall borrowings and strengthen the group’s balance sheet, according to the property group statement released on Wednesday (March 25).
“The full redemption of the Tranche 1 perpetual sukuk reflects the steady progress we are making in strengthening Tropicana as an organisation and reinforces our commitment to meeting our obligations.
“We will continue transforming Tropicana into a future-ready group focused on sustainable growth. Our strategy prioritises strengthening our core property segment through an asset-light model, leveraging our development expertise, distinctive DNA and strong ESG commitments,” said Tropicana.
The latest redemption follows the fulfilment of a RM139 million obligation in October 2025 under its RM1.5 billion Islamic Medium-Term Notes (IMTN) Sukuk Wakalah programme, bringing total cumulative repayments to RM1.12 billion, it noted.
The group has accelerated efforts over the past two years to pare down debt and reduce gearing, largely through asset disposals, which also resulted in lower recurring income for the group.
It sold its Tropicana Gardens Mall to IOI Properties Group Bhd (KL:IOIPG) for RM680 million cash in 2024.
Prior to that, Tropicana Corp sold its W Kuala Lumpur hotel and Courtyard by Marriott Penang in late 2023 and early 2024 for a combined RM435 million. Collectively, the three sales generated just over RM1.1 billion.
As at Dec 31, 2025, Tropicana Corp's total borrowings stood at RM2.75 billion, slightly higher than RM2.31 billion a year earlier.
Tropicana Corp previously told The Edge in an interview in July 2024 that it aims to reduce borrowings to RM1.2 billion by end-2025, down from elevated levels recorded between 2017 and 2021.
The property developer currently has RM2 billion in unbilled sales and a development pipeline with an estimated gross development value (GDV) exceeding RM7.5 billion.
Looking ahead, Tropicana said it remains focused on sustaining its growth trajectory through stronger sales performance, strategic monetisation of landbanks and investment properties, and ongoing financial optimisation.
Tropicana’s current landbank stands at 1,336.1 acres, with a total potential GDV of RM168.4 billion.
Financially, the group's net loss for the year ended Dec 31, 2025 (FY2025), came in at RM118.83 million, 43% less than the RM208.52 million it recorded for FY2024. Cumulative revenue grew 6% to RM1.5 billion, driven by higher progress billings across key projects in the Klang Valley, as well as the Southern and Northern regions.
Shares in Tropicana Corp closed three sen or 2.31% lower at RM1.27 on Wednesday, valuing the developer at RM3.19 billion.