New Straits Times - Tropicana reaps benefits of landbanking

Its landbank currently stands at 359.92ha.

The gross development value (GDV) potential for the landbank is RM42.1 billion, said the company.

Tropicana has been actively selling land in the last five years to improve its financial performance.

In 2015, it sold 124.93ha of land at RM35 per sq ft (psf) near Kota Kemuning. Selangor, to Eco World Development Group Bhd for RM470.67 million cash.

It gained about RM170 million from the disposal.

The land was part of the 474ha Tropicana Aman. previously known as Canal City land, which Tropicana acquired from the Selangor state government for RM1.3 billion in April 2013.

According to Tropicana, the sale was in line with its transformation strategy to unlock the value of sizeable landbank and monetise the group's assets to strengthen its balance sheet.

In 2016, the company gained RM55.5 million from selling 131.96ha of freehold land in Getang Patah. Johor. The land was sold to China-based Tiarn Group for RM569.8 million.

For the financial year ended December 31 last year, Tropicana's revenue grew 30.8 per cent to RM1.9 billion while net profit rose 73.9 per cent to RM200 million.

It said in a statement recently that the drive to unlock the value of its landbank continues to give strong results as its net gearing has improved to 0.27 times from 0.31 times previously.

"Looking ahead, the group will remain focused on being market driven and adapting to market demands." it said.

Tropicana also said the higher revenue and net profit last year were driven by strong take-ups across all phases launched at five of its signature developments - Tropicana Heights (92%). Tropicana Gardens (91%). The Residences 87%, Tropicana Metropark (79%) and Tropicana Aman (58%).