Tropicana Corp Bhd is set to enhance its property portfolio with the acquisition of a leasehold land in Kota Damansara, Selangor, for RM224 million. Positioned for residential development, the 7.79-acre site is planned to host four to five towers of serviced apartments, eyeing an estimated gross development value (GDV) of approximately RM2.8 billion. This strategic move aims to capitalize on the success of Tropicana Gardens, a mixed development in its final phase, and signals Tropicana’s commitment to expanding its presence in the prime areas of Klang Valley.
The acquisition, executed by Tropicana’s wholly-owned subsidiary Tropicana Kajang Hill Sdn Bhd, involves a sale and purchase agreement with Perbadanan Kemajuan Negeri Selangor (PKNS). Tropicana envisions the development to encompass around 3,200 serviced apartments, complemented by condominium facilities and a selective retail component, enriching the community’s lifestyle offerings.
This acquisition not only serves to replenish Tropicana’s landbank in a coveted location but also promises to boost the group’s future earnings and growth trajectory. The development is poised to leverage the matured amenities of Tropicana Gardens, fostering a synergistic environment that benefits residents and investors alike.
Tropicana recently reported a net loss of RM158.92 million for the fourth quarter of the fiscal year 2023 (4QFY2023), with a notable reduction from the previous year’s loss, thanks to a significant increase in revenue driven by higher progress billings across key projects. The completion of land sales in strategic locations also contributed to the group’s improved financial performance, setting a positive precedent for the upcoming development in Kota Damansara.
With a closing share price of RM1.26 on Tuesday, Tropicana Corp Bhd demonstrates resilience and strategic planning in its expansion efforts, underlined by a robust project pipeline aimed at driving sustainable growth in the vibrant real estate market of Malaysia.
