KUALA LUMPUR (Nov 10): Tropicana Corp Bhd is buying two pieces of contiguous freehold land next to its Tropicana Grandhill development in Bentong, Pahang, for RM402.49 million to expand its landbank and enhance its property development profile in the Genting Highlands.
It is buying the plots, which measure a collective 308 acres, from wholly-owned subsidiaries of YTL Land and Development Bhd, Satria Sewira Sdn Bhd and Emerald Hectares Sdn Bhd. YTL Corp Bhd managing director Datuk Yeoh Seok Kian and YTL Corp executive director Datuk Yeoh Soo Min are the directors of both Satria Sewira and Emerald Hectares.
The first plot, which it is buying for RM178.16 million, is a 102-acre piece of land. The second plot, priced at RM224.33 million, measures 206 acres.
“The proposed acquisitions, along with the company’s existing land adjacent for future development, hereby provide an opportunity for the company and the group to build upon its land bank and also to enhance its property development profile in Genting Highlands.
“This strategic location, [which is] within a short distance to Awana Genting Highlands Golf and Resort, Genting Highland Premium Outlet and Awana Skyway, along with its immediate vicinity in the established and matured Gohtong Jaya, augurs well for the development of the said land parcels,” the group said in a bourse filing today.
Tropicana plans to fund the acquisitions, which it expects to complete by the first half of 2021, using a combination of internal funds and/or bank borrowings, the ratio of which will be determined later, after taking into consideration its gearing level, interest costs and internal cash requirements.
Tropicana shares closed unchanged at 83.5 sen today, giving it market capitalisation of RM1.23 billion.