The Edge Online - Tropicana redeems second tranche of sukuk wakalah worth RM179m

KUALA LUMPUR (Oct 6): Property developer Tropicana Corp Bhd has redeemed the second tranche of its sukuk wakalah programme worth RM179 million due on Friday.

This is part of the RM1.5 billion sukuk programme issued by the group in 2020 to repay borrowings to unencumbered secured properties. The first tranche of RM465.5 million was redeemed at the end of June.

In a statement, Tropicana said it continued to deliver sustainable earnings backed by its solid RM2.3 billion unbilled sales, ongoing property sales campaign, as well as improved performance of the group’s property development, property investment, recreation and resort operations. 

“We have strategic divestment plans that we are confident of achieving, and will continue to roll out effective sales campaigns to drive growth, especially emphasising our digital and online engagement initiatives,” said Tropicana. 

The group reported RM664.2 million property sales in the first six months of 2023, with high sales bookings of over RM1.3 billion. 

Tropicana’s upcoming developments this year include SouthPlace 2 Shoppes & Serviced Residences, as well as Tropicana Metropark in Subang Jaya, and Merissa Serviced Suites, Tropicana Cenang in Langkawi. 

Overall, Tropicana’s total land bank spans 1,842 acres (745.43 hectares), with total potential gross development value of approximately RM120 billion. The group said it is in a good position to unlock the value of its strategic land bank, and deliver sustainable performance in the next few years. 

At Friday’s noon break, Tropicana’s share price settled two sen or 1.65% higher at RM1.24. This valued the group at RM2.85 billion