By Sharen Kaur - Publihsed in NST Property, March 25, 2021
Tropicana Corporation Bhd, developer of the luxurious Tropicana Golf & Country Resort in Petaling Jaya is cautiously optimistic about its growth potential, says its group managing director Dion Tan.
The group currently has a total land bank of about 860 hectares, with a potential gross development value (GDV) of around RM78 billion.
Tan said this places the group in a good position to unlock the value of its strategic land bank and deliver sustainable earnings in the next few years.
He said Tropicana is mindful of the challenges presented to the group as a result of the Covid-19 pandemic outbreak and is closely monitoring its key performances.
"We are cautiously optimistic of all our projects' potential, especially those located in strategic regions," he said.
In the financial year ended December 31, 2020 (FY2020), the group rolled out a series of new developments with a total GDV of about RM700 million across its signature Tropicana townships.
The new launches included Tropicana Miyu condominiums in Petaling Jaya and Shoppes & Residences (South), a mixed development comprising retail lots, and serviced apartments at Tropicana Metropark, Subang Jaya.
Tan said despite the unprecedented times, the group delivered encouraging results and recorded higher property sales in FY2020, compared to the year before that.
"Our Tropicana 100 campaign is drawing a steady flow of interests, signaling a gradual recovery in the property market. We will continue to progress by maintaining stringent cost-efficiency measures, digital realignments, and careful rationalisation of our launches," he said in a statement.
He said the group also continues to record an excellent uptake for Edelweiss SOFO and Serviced Residences, the fifth and final tower of its signature Tropicana Gardens development in Kota Damansara.
Tropicana's FY20 unbilled sales stood at RM1.09 billion.
In the pipeline, the group plans to launch Freesia Residences, the contemporary villa series comprising Lake Villas and Park Villas in Tropicana Aman, Kota Kemuning; TwinPines Serviced Suites, an exclusive residential phase in its first integrated master-planned development, Tropicana Grandhill in Genting Highlands, Pahang; and, Summit Commercial Hub, the vibrant business centre at Tropicana Uplands in Gelang Patah, Johor.
Tropicana's net profit rose 231.43 per cent to RM48.08 million for the fourth quarter ended December 31, 2020 (4QFY20) from RM14.51 million in the preceding quarter.
The group attributed this to the sale of two parcels of freehold development land for RM98.1 million, and higher sales and progress billings across key projects in the Klang Valley and Southern Region, it said in a filing with Bursa Malaysia today.
Tropicana recorded quarterly revenue of RM356.7 million, which was 59.3 per cent higher than RM223.97 posted in 3QFY20.
For the full financial year, its net profit plunged 71.3 per cent to RM92.03 million from RM320.76 million in the previous year.
Revenue stood at RM1.06 billion, which was 6.8 per cent or RM76.8 million lower then the RM1.14 billion posted in the corresponding period in the preceding year.
"This was mainly due to the recognition of the negative goodwill which arose when Tropicana acquired development lands held by 12 acquiree companies from a related party at a favourable price of an average discount of 13.4 per cent to the market value of these lands," it said.
The corporate exercise to acquire the development lands was completed in November 2019.
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