Tropicana Corp Proposing To Dispose Of Gelang Patah Land For RM383.13 Mln

KUALA LUMPUR, Aug 26 (Bernama) -- Tropicana Corporation Bhd’s wholly owned subsidiary, Tropicana Firstwide Sdn Bhd has entered into a sale and purchase agreement with several parties on a proposed disposal of a freehold land measuring 27.70 hectares in Gelang Patah, Johor for a cash consideration of RM383.13 million.

The property developer said that the purchasers are NTT Global Data Centers JHB1 Campus Sdn Bhd; NTT Global Data Centers JHB1A Sdn Bhd; NTT Global Data Centers JHB1B Sdn Bhd; NTT Global Data Centers JHB1C Sdn Bhd; NTT Global Data Centers JHB1D Sdn Bhd; NTT Global Data Centers JHB1E Sdn Bhd; and NTT Global Data Centers JHB1F Sdn Bhd.

It said the proposed disposal presents an opportunity to unlock the value of the land.

“Approximately RM80.93 million from the disposal consideration will be used to repay existing borrowings on the land, which is expected to result in an estimated annual interest savings of approximately RM6.49 million, based on an average interest rate of 8.0 per cent per annum,” the group said.

It said the net proceeds from the proposed disposal are expected to enhance the Tropicana group’s working capital position and fund its property development, offering greater financial flexibility.

“Our transaction with the purchasers is expected to expand Tropicana's industry network, broadening our market reach and potentially facilitating future land sales to other data centre operators within our landbank.

“It is expected to create value and act as a catalyst for increased demand in the surrounding lands owned by Tropicana group,” it said.

The group added that barring any unforeseen circumstances, the proposed disposal is expected to be completed in the first quarter of 2026.

-- BERNAMA