Tropicana unit selling land for RM55mil

Tropicana Corp Bhd’s unit Advent Nexus Sdn Bhd is selling its freehold land in Jalan Pudu, Bukit Bintang, Kuala Lumpur, to real estate company Pinnacle Supreme Sdn Bhd for RM55mil cash.

In a filing with Bursa Malaysia, Tropicana said the 11,904-sq-ft land comprised a 4½-years-old, 10-storey Sky Express Hotel.

The property developer plans to realise gain via the property sale and raise funds for working capital and/or reduce its bank borrowings.

The property had a net book value of RM45.09mil as at Dec 31, 2014. Tropicana had originally invested RM54mil in it in June 2012.

Tropicana said the sale was arrived at on a willing buyer-willing seller basis, after considering the original cost of investment and the market value of the property.

Under the terms, Pinnacle would have to come up with 10% or RM5.5mil once the sales and purchase agreement was completed.

The remaining RM49.5mil would be paid within two months from the completion period, with an extension of one month subject to late payment interest of 8% per annum on the outstanding sum calculated on a daily basis.

Other conditions include Advent Nexus having obtained a consent from Tenaga Nasional Bhd for the transfer of the property to Pinnacle and Pinnacle to get approval from the Economic Planning Unit with regards to the property acquisition. All of these are to be concluded within three months.

The disposal was slated for completion in the second quarter of 2016 and would not have any impact on Tropicana’s earnings per share and net assets per share for the financial year ending Dec 31, 2016. - By The Star