Tropicana Corp sold land for RM116.1 mil, nets RM87 mil gain

Property developer Tropicana Corp Bhd, formerly known as Dijaya Corp Bhd, sold two parcels of leasehold land in Petaling Jaya for RM116.1 million.

The 6.41 acres leasehold land, located in Tropicana Golf and Country Resort, is currently zoned for commercial development. The land is sold to Mayfair Ventures Sdn Bhd -- a wholly-owned unit of Mulpha Land Bhd.

"The pricing of approximately RM416 per sq ft is a fair level for us to crystalise the value of these land parcels.

"This transaction is inl ine with Tropicana's strategy to unlock the significant value of our group's landbank, and to further degear our balance sheet," said group chief executive officer Datuk Yau Kok Seng in a statement earlier this evening.

Yau said the sale will not only result in an immediate improvement to its current year earnings, but the cash raised will further strengthen its delivery platform and help the company to sustain its growth over the medium to longer term.

The deal, which is aimed to be completed by fourth quarter this year, is expected to generate a net gain of RM87 million for the company.

Tropicana Corp shares on Bursa Malaysia fell 7 sen to RM1.90, with more than 23 million shares traded.