By Khairul Khalid
Tropicana Corporation Bhd has sold 308.72 acres of land sale in Kuala Langat, Selangor to Eco World Development Group Bhd for RM470 million, according to the company’s statement to Bursa Malaysia.
“The proposed disposal is expected to be completed in the second half of 2014 and is expected to generate a one-off net gain of approximately RM170 million for Tropicana,” the statement said.
The tract of land is part of the 1,172 acre Tropicana Aman development that Tropicana had purchased in April 2013 that was previously known as Canal City. It is expected to launch in the second half of 2014.
“The scheduled launches of Tropicana Aman for 2014 will comprise landed properties with an estimated gross development value of RM770million,” Tropicana Group executive vice chairman Danny Tan said.
Tan added that the land sale is in line with its transformation strategy to unlock the value of its sizeable landbank and monetise its assets to strengthen our balance sheet.
The transaction is expected to improve Tropicana’s incremental net earnings per share of 12 sen for its year ending Dec 31, 2014. For the financial year ended Dec 31, 2014, Tropicana posted a 134% increase in revenue to RM1.47bil.
Trading of Tropicana and Eco World was temporarily suspended prior to the announcement of the transaction.
Prior to the suspension, shares of Tropicana was trading at RM1.43, up 5 sen. Eco World was trading at RM4.69, up 2 sen.
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