Tropicana buys stake in property firm for RM49m

Tropicana Corp Bhd has announced a proposed acquisition of 50.1% of the total paid- up capital of Peluang Duta Sdn Bhd (PDSB) for a purchase consideration of RM49.05 million.

The company said the total purchase consideration is based on RM40 per sq ft, which is approximately an 11% discount from the market indicative value of RM45 per sq ft.

T Sanctuary Development Sdn Bhd, a 70%-owned subsidiary of PDSB, owns 329.1 acres (133.18ha) of leasehold land, which is strategically located in Johor and is close to Singapore and other matured township developments. The land has been earmarked for a mixed development with a potential net gross development value of RM4.3 billion.

The company said the overall proposed development component mainly comprises 70% residential and 30% commercial, which includes terrace houses, shop offices, urban affordable homes, serviced apartments, as well as an international school.

The international school will be strategically located along-side the scenic Sungai Pulai Forest Reserve, presenting its students with a pristine and clean environment to learn, grow and innovate.

Taking into account several factors including the positive property outlook in Johor with the increased transaction volume by 11.6% in the first quarter of 2018 compared to the preceding quarter in 2017, as well as the residential sector remaining dominant in the overall property market, the company is optimistic that the properties located at prime locations are still well-sought. — TMR