image via TheLocalTravelGuide
PETALING JAYA (Jan 26): Tropicana Macalister Avenue (Penang) Sdn Bhd, a wholly-owned subsidiary of Tropicana Corp Bhd, has inked a significant deal with IOI PFCC Hotel Sdn Bhd, an indirect subsidiary of IOI Properties Group Bhd, for the sale of Courtyard by Marriott Penang. The transaction, sealed at RM165 million in cash, marks a pivotal moment for Tropicana.
This strategic move, outlined in a Tropicana media release, follows a willing buyer-willing seller approach and is poised to infuse approximately RM80.8 million in surplus cash for the property developer. The sale is a part of Tropicana's ongoing strategy to monetise its land assets and investment properties, thereby reducing net gearing and enhancing its overall financial standing.
Tropicana reassures stakeholders that despite the sale, the group remains committed to delivering sustainable earnings. With a robust pipeline of RM2.3 billion in unbilled sales, active property sales campaigns, and an improved FY2023 performance netting RM1.4 billion, the company anticipates a positive trajectory.
In a statement, the developer affirmed its commitment to transforming Tropicana into a forward-looking property group, emphasising sustainable growth, development DNAs, and ESG commitments. The strategic divestment plans are aligned with the company's vision of fortifying its market presence and ensuring future earnings.
Courtyard by Marriott Penang, a beacon of modern hospitality that opened in 2020, boasts 199 rooms and suites along with top-notch facilities. Positioned at the heart of Georgetown, the hotel has consistently enjoyed commanding views and high occupancy rates throughout the year.
Despite the sale, Tropicana remains optimistic about the continuous demand for prime properties in its established, matured, and evolving townships. The move not only aligns with the company's financial objectives but also positions it for sustained growth and market prominence.