Lower property sales in key on-going projects for Tropicana

Tropicana Corp Bhd recorded lower progress billings across some of the group’s key on-going projects and lower sales in the first quarter of its current financial year ending December 31, 2020 (FY2020).

The developer said this was due to the movement control order (MCO) that was implemented in mid-March to curb the spread of Covid-19.

For the first quarter ended March 31, 2020, it posted lower revenue and pre-tax profit (PBT) of RM142.7 million and RM7.9 million respectively, compared to RM209.8 million and RM21 million recorded in the corresponding quarter in FY2019.

In a statement, Tropicana said it will introduce new developments and phases across its signature Tropicana townships with a gross development value (GDV) of RM1.6 billion in FY2020.

The upcoming launches include the first phase of Tropicana Grandhill, and the TwinPines Serviced Suites with fully furnished serviced apartments in Genting Highlands, Pahang.

It will also introduce Shoppes & Residences (South), a mixed development featuring retail lots and serviced apartments at Tropicana Metropark, Subang Jaya; a new landed residential phase at Tropicana Aman, Kota Kemuning; and Tropicana Miyu condominiums at Jalan Harapan, Petaling Jaya.

In Johor, coming up are shop offices at Gelang Patah.

“We believe that there will still be demand for properties in prime locations with attractive pricing,” it said.

Tropicana said as at March 21, 2020, it had unbilled sales of RM727.2 million, anchored by six ongoing townships, commercial and resort-themed projects.

Its current landbank amounts to about 940 hectares with a potential gross development value (GDV) of RM70 billion.

As of September 2019, Tropicana had RM1.97 billion of debt.

The group in April had proposed a RM1.5 billion Islamic medium-term notes programme (sukuk wakalah) to repay borrowings to unencumbered secured properties.

Source: NST