KUALA LUMPUR (Jan 12): Tropicana Corp Bhd, which has been disposing of its assets to trim its gearing since 2014, is selling its Sky Express Hotel on Jalan Bukit Bintang, Kuala Lumpur, for RM55 million.

In a filing with Bursa Malaysia today, Tropicana said, apart from paying its bank borrowings, the sale's net proceeds of about RM24.4 million shall also be used for working capital purposes.

"The expected gain from the disposal is approximately RM2.5 million (net of tax payable)," the property developer added.

Tropicana said its wholly-owned subsidiary Advent Nexus Sdn Bhd had earlier in the day signed a sale and purchase agreement with Pinnacle Supreme Sdn Bhd to sell the piece of land measuring 1,106 sq m, along with the 10-storey Sky Express Hotel built on it.

The original cost of investment for the property was RM54 million, Tropicana said. The selling price took into consideration the investment cost and the surrounding properties' prevailing market values.

After the disposal exercise is completed — anticipated to be sometime in the second quarter this year — Tropicana said Pinnacle Supreme has the right to use the hotel's current name for 18 months.

Tropicana shares today fell by one sen or 1.02% to close at 97.5 each, bringing the company's market value to RM1.41 billion.

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