Tropicana Corp sells Courtyard by Marriott Penang to IOI for RM165m

Tropicana Corp sells Courtyard by Marriott Penang to IOI for RM165m

Tropicana Corporation Bhd’s subsidiary, Tropicana Macalister Avenue (Penang) Sdn Bhd, has signed a sale and purchase agreement with IOI PFCC Hotel Sdn Bhd to sell Courtyard by Marriott Penang for RM165 million.

The transaction will generate a surplus cash of approximately RM80.8 million for Tropicana, contributing to a reduction in net gearing and an improvement in its financial position.

The move is in line with the company’s strategy to monetize land banks and investment properties.

Tropicana recorded RM1.4 billion in property sales in FY2023, with unbilled sales at RM2.3 billion, positioning the company well for sustainable earnings.

The disposal of Courtyard is part of Tropicana’s broader initiative to strengthen its market presence and achieve strategic divestment plans.

The company remains optimistic about the demand for properties in prime locations within its established townships.

Ongoing and new developments, such as SouthPlace Residences and Hana Residences, have experienced high take-up rates.

Tropicana plans to unveil eight new signature developments in 2024 with an estimated total GDV of over RM4 billion.

Overall, Tropicana holds a total landbank of 1,842 acres with a potential GDV of approximately RM120 billion, positioning the company favorably for unlocking the value of its strategic landbank and ensuring sustainable performance in the coming years.

Source: TheMalaysianReserve.com

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